Aaron’s (NYSE:PRG) Shares Gap Up After Better-Than-Expected Earnings

Shares of Aaron’s Holdings Company, Inc. (NYSE:PRG) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $33.87, but opened at $35.59. Aaron’s shares last traded at $35.39, with a volume of 227,615 shares changing hands.

The company reported $0.74 EPS for the quarter, beating the consensus estimate of $0.60 by $0.14. The firm had revenue of $525.36 million during the quarter, compared to the consensus estimate of $581.82 million. Aaron’s had a net margin of 6.54% and a return on equity of 22.36%. The company’s quarterly revenue was down 5.2% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.80 earnings per share. Aaron’s has set its Q1 2026 guidance at 0.700-0.900 EPS and its FY 2026 guidance at 4.000-4.450 EPS.

More Aaron’s News

Here are the key news stories impacting Aaron’s this week:

• Positive Sentiment: Management raised FY 2026 and Q1 2026 guidance well above sell‑side consensus — FY EPS guidance of $4.00–$4.45 (consensus ~3.55) and FY revenue guidance of $3.0B–$3.1B. This signals management confidence in underlying cash flows and future earnings power. PROG Holdings Reports Fourth Quarter 2025 Results
• Positive Sentiment: Q4 EPS beat consensus: $0.74 vs. the $0.60 estimate, showing operating leverage despite tougher retail conditions. Earnings coverage summarized by Zacks noted the beat. PROG Holdings (PRG) Q4 Earnings Top Estimates
• Positive Sentiment: Profitability remains solid (net margin ~6.5%, return on equity ~22%), supporting free cash flow and dividend/capital allocation optionality. Earnings summary and materials
• Neutral Sentiment: Management published the earnings slide deck and hosted the earnings call; the transcript and slides provide detail on product mix (Progressive Leasing, Purchasing Power, Four Technologies, MoneyApp) and risk factors. Investors should review for commentary on originations, credit performance and buyout timing. Q4 Results – Earnings Call Presentation Q4 2025 Earnings Call Transcript
• Negative Sentiment: Revenue missed expectations: Q4 revenue of ~$525M vs. analyst estimates near $582M and was down ~5.2% year‑over‑year, reflecting a challenging retail environment and softer originations — a clear top‑line headwind. Quarterly results and press release
• Negative Sentiment: EPS declined versus the prior-year quarter ($0.80 → $0.74), underlining that improving margins and guidance must translate into sustained top-line recovery to keep the rally intact. PROG Holdings Reports Fourth Quarter 2025 Results

Wall Street Analysts Forecast Growth

A number of analysts recently commented on PRG shares. BTIG Research raised Aaron’s from a “sell” rating to a “neutral” rating and set a $31.00 price target for the company in a research note on Friday, November 21st. B. Riley Financial started coverage on shares of Aaron’s in a research report on Tuesday, December 16th. They issued a “buy” rating and a $50.00 target price for the company. Wall Street Zen cut shares of Aaron’s from a “buy” rating to a “hold” rating in a research report on Saturday, January 10th. Weiss Ratings reissued a “hold (c)” rating on shares of Aaron’s in a research note on Thursday, January 22nd. Finally, TD Cowen lowered their price objective on shares of Aaron’s from $41.00 to $38.00 and set a “buy” rating for the company in a report on Thursday, January 8th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average target price of $38.83.

Institutional Investors Weigh In On Aaron’s

A number of hedge funds and other institutional investors have recently bought and sold shares of PRG. Quarry LP lifted its holdings in shares of Aaron’s by 82.8% during the fourth quarter. Quarry LP now owns 1,117 shares of the company’s stock valued at $33,000 after purchasing an additional 506 shares during the last quarter. Whittier Trust Co. increased its position in Aaron’s by 157.6% during the 2nd quarter. Whittier Trust Co. now owns 1,391 shares of the company’s stock valued at $41,000 after buying an additional 851 shares in the last quarter. Federation des caisses Desjardins du Quebec purchased a new position in Aaron’s during the fourth quarter valued at $44,000. GAMMA Investing LLC boosted its holdings in Aaron’s by 45.3% in the fourth quarter. GAMMA Investing LLC now owns 1,806 shares of the company’s stock worth $53,000 after acquiring an additional 563 shares in the last quarter. Finally, WealthCollab LLC grew its stake in shares of Aaron’s by 61.9% in the second quarter. WealthCollab LLC now owns 2,092 shares of the company’s stock worth $61,000 after acquiring an additional 800 shares during the last quarter. Hedge funds and other institutional investors own 97.92% of the company’s stock.

Aaron’s Stock Performance

The company has a debt-to-equity ratio of 0.85, a current ratio of 4.74 and a quick ratio of 2.65. The business has a 50 day moving average price of $31.91 and a 200 day moving average price of $31.76. The stock has a market capitalization of $1.43 billion, a PE ratio of 9.18 and a beta of 1.73.

About Aaron’s

PROG Holdings, Inc (NYSE: PRG), formerly known as Aaron’s, is a North American provider of lease-to-own and consumer finance solutions. The company operates through two primary segments: Aaron’s Business Solutions and Progressive Financial Services. Through Aaron’s Business Solutions, PROG offers customers access to furniture, electronics, home appliances and technology products via lease ownership arrangements, serving both individual consumers and small businesses.

The Progressive Financial Services segment provides lease-purchase and retail point-of-sale financing programs to customers with limited credit histories.