Brokerages Anticipate Rent-A-Center, Inc. (NASDAQ:RCII) to Announce $0.71 EPS

Wall Street brokerages expect that Rent-A-Center, Inc. (NASDAQ:RCIIGet Rating) will post earnings of $0.71 per share for the current fiscal quarter, Zacks Investment Research reports. Four analysts have issued estimates for Rent-A-Center’s earnings. The lowest EPS estimate is $0.70 and the highest is $0.72. Rent-A-Center posted earnings of $1.32 per share in the same quarter last year, which indicates a negative year-over-year growth rate of 46.2%. The business is expected to announce its next quarterly earnings results on Monday, January 1st.

On average, analysts expect that Rent-A-Center will report full year earnings of $4.72 per share for the current financial year, with EPS estimates ranging from $4.56 to $4.91. For the next year, analysts anticipate that the firm will post earnings of $5.90 per share, with EPS estimates ranging from $5.45 to $6.90. Zacks Investment Research’s earnings per share averages are an average based on a survey of sell-side analysts that cover Rent-A-Center.

Rent-A-Center (NASDAQ:RCIIGet Rating) last issued its quarterly earnings results on Wednesday, February 23rd. The company reported $1.08 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.58 by ($0.50). The company had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.20 billion. Rent-A-Center had a return on equity of 50.75% and a net margin of 2.94%. The firm’s quarterly revenue was up 63.5% on a year-over-year basis. During the same quarter last year, the firm posted $1.03 EPS.

A number of analysts recently issued reports on RCII shares. KeyCorp dropped their price target on shares of Rent-A-Center from $68.00 to $44.00 and set an “overweight” rating for the company in a research note on Friday, February 25th. Zacks Investment Research downgraded shares of Rent-A-Center from a “hold” rating to a “strong sell” rating and set a $24.00 price objective for the company. in a report on Monday, March 7th. StockNews.com assumed coverage on shares of Rent-A-Center in a report on Thursday, March 31st. They issued a “hold” rating for the company. Finally, Raymond James downgraded shares of Rent-A-Center from a “strong-buy” rating to an “outperform” rating and decreased their price objective for the stock from $65.00 to $40.00 in a report on Friday, February 25th. One equities research analyst has rated the stock with a sell rating, one has given a hold rating and five have issued a buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Buy” and an average target price of $53.00.

Shares of NASDAQ:RCII traded down $0.43 during midday trading on Tuesday, reaching $24.74. The company had a trading volume of 1,191,583 shares, compared to its average volume of 1,031,744. The company has a debt-to-equity ratio of 3.06, a current ratio of 3.36 and a quick ratio of 0.74. The stock’s fifty day moving average price is $30.42 and its 200-day moving average price is $42.51. The stock has a market capitalization of $1.46 billion, a P/E ratio of 12.37 and a beta of 1.63. Rent-A-Center has a one year low of $22.70 and a one year high of $67.76.

The company also recently declared a quarterly dividend, which will be paid on Friday, April 22nd. Stockholders of record on Tuesday, April 5th will be issued a dividend of $0.34 per share. This represents a $1.36 annualized dividend and a dividend yield of 5.50%. The ex-dividend date of this dividend is Monday, April 4th. Rent-A-Center’s dividend payout ratio (DPR) is 68.00%.

In other news, CEO Mitchell E. Fadel purchased 40,000 shares of Rent-A-Center stock in a transaction dated Tuesday, March 1st. The stock was bought at an average price of $27.08 per share, with a total value of $1,083,200.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders own 1.50% of the company’s stock.

Several institutional investors and hedge funds have recently made changes to their positions in the company. Koshinski Asset Management Inc. acquired a new stake in Rent-A-Center in the third quarter worth about $40,000. Atticus Wealth Management LLC acquired a new stake in Rent-A-Center in the third quarter worth about $91,000. CWM LLC acquired a new stake in Rent-A-Center in the fourth quarter worth about $92,000. Vaughan Nelson Investment Management L.P. acquired a new stake in Rent-A-Center in the third quarter worth about $123,000. Finally, Gladius Capital Management LP acquired a new stake in Rent-A-Center in the fourth quarter worth about $142,000. 76.20% of the stock is owned by institutional investors.

About Rent-A-Center (Get Rating)

Rent-A-Center, Inc, together with its subsidiaries, leases household durable goods to customers on a lease-to-own basis. The company operates in four segments: Rent-A-Center Business, Acima, Mexico, and Franchising. It offers furniture and accessories, appliances, consumer electronics, computers, tablets and smartphones, tools, tires, handbags, and other accessories under rental purchase agreements.

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