Rent-A-Center (NASDAQ:RCII) Releases Q1 2022 Earnings Guidance

Rent-A-Center (NASDAQ:RCII – Get Rating) issued an update on its first quarter 2022 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of $0.650-$0.800 for the period, compared to the Thomson Reuters consensus estimate of $0.710. The company issued revenue guidance of $1.13 billion-$1.16 billion, compared to the consensus revenue estimate of $1.11 billion.Rent-A-Center also updated its FY 2022 guidance to $4.500-$5.000 EPS.

Shares of RCII stock opened at $24.59 on Tuesday. The stock has a market cap of $1.45 billion, a price-to-earnings ratio of 12.30 and a beta of 1.63. The company has a quick ratio of 0.74, a current ratio of 3.36 and a debt-to-equity ratio of 3.06. Rent-A-Center has a fifty-two week low of $22.70 and a fifty-two week high of $67.76. The firm’s 50 day moving average price is $27.74 and its two-hundred day moving average price is $40.40.

Rent-A-Center (NASDAQ:RCII – Get Rating) last announced its quarterly earnings results on Wednesday, February 23rd. The company reported $1.08 earnings per share for the quarter, missing analysts’ consensus estimates of $1.58 by ($0.50). The business had revenue of $1.17 billion for the quarter, compared to analyst estimates of $1.20 billion. Rent-A-Center had a net margin of 2.94% and a return on equity of 50.75%. The company’s quarterly revenue was up 63.5% on a year-over-year basis. During the same period last year, the firm earned $1.03 earnings per share. On average, equities analysts forecast that Rent-A-Center will post 4.72 EPS for the current fiscal year.

The firm also recently declared a quarterly dividend, which was paid on Friday, April 22nd. Shareholders of record on Tuesday, April 5th were given a dividend of $0.34 per share. The ex-dividend date was Monday, April 4th. This represents a $1.36 dividend on an annualized basis and a yield of 5.53%. Rent-A-Center’s dividend payout ratio (DPR) is 68.00%.

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

In related news, CEO Mitchell E. Fadel purchased 40,000 shares of the company’s stock in a transaction that occurred on Tuesday, March 1st. The stock was acquired at an average price of $27.08 per share, for a total transaction of $1,083,200.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. 1.50% of the stock is currently owned by insiders.

Large investors have recently modified their holdings of the stock. Virtu Financial LLC increased its stake in shares of Rent-A-Center by 54.2% in the fourth quarter. Virtu Financial LLC now owns 5,700 shares of the company’s stock worth $274,000 after buying an additional 2,003 shares during the last quarter. Janus Henderson Group PLC bought a new stake in Rent-A-Center during the third quarter valued at $293,000. LPL Financial LLC boosted its holdings in shares of Rent-A-Center by 55.4% during the fourth quarter. LPL Financial LLC now owns 15,307 shares of the company’s stock valued at $735,000 after acquiring an additional 5,460 shares during the period. Advisors Asset Management Inc. boosted its holdings in shares of Rent-A-Center by 43.0% during the fourth quarter. Advisors Asset Management Inc. now owns 41,120 shares of the company’s stock valued at $1,975,000 after acquiring an additional 12,366 shares during the period. Finally, Deutsche Bank AG boosted its holdings in shares of Rent-A-Center by 3.8% during the fourth quarter. Deutsche Bank AG now owns 47,641 shares of the company’s stock valued at $2,288,000 after acquiring an additional 1,748 shares during the period. Institutional investors and hedge funds own 76.20% of the company’s stock.

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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