Rent-A-Center (RCII) Stock Unmoved After Hours Despite Earnings Beat

Rent-A-Center (NASDAQ:RCII) shares were largely unmoved after the bell Monday as the company reported its latest quarterly earnings results, posting an earnings and revenue beat.

Rent-A-Center (RCII)

The furniture and electronics rent-to-own company, based out of Plano, Texas, announced that for its second quarter of fiscal 2018, it brought in net income of $13.75 million, or 25 cents per share. The figure was better than the company’s loss of $8.89 million, or 17 cents per share from its second quarter of fiscal 2017.

On an adjusted basis, Rent-A-Center brought in earnings of $25.55 million, or 47 cents per share for the period. Analysts were calling for the company to bring in adjusted earnings of 24 cents per share.

Revenue was also better than analysts expected for the company as it amassed sales of $655.73 million, ahead of the $644.12 million that Wall Street was calling for. However, the figure marked a decline from Rent-A-Center’s year-ago revenue of $677.64 million.

“We are extremely pleased with both the top and bottom line performances for the second quarter, across all operating segments,” said Mitch Fadel, CEO of Rent-A-Center. “Positive consolidated same store sales of 3.7 percent improved sequentially in each month within the quarter and across all operating segments.”

“This was driven by sequential customer growth in the Core, and strong demand in Acceptance NOW primarily due to the value proposition enhancements. In addition, the Company’s cost savings initiatives continue to outperform our internal goals, further strengthening the EBITDA performance.”

RCII stock was down about 0.2% during regular trading hours on Monday in anticipation of its quarterly earnings results. Shares were unmoved after hours despite the earnings beat.

Article printed from InvestorPlace Media,

©2022 InvestorPlace Media, LLC