RCII Earnings: Profit Increases Again

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RCII (NASDAQ:RCII) reported its results for the second quarter. Rent-A-Center is an operator in the United States rent-to-own industry.

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RCII Earnings Cheat Sheet

Results: Net income for RCII rose to $44.2 million (74 cents per share) vs. $39.9 million (63 cents per share) in the same quarter a year earlier. This marks a rise of 10.8% from the year-earlier quarter.

Revenue: Rose 7.4% to $749.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: RCII beat the mean analyst estimate of 71 cents per share. Analysts were expecting revenue of $753.9 million.

Quoting Management: “We are generally pleased with our results in the quarter, as total revenues increased over 7% and earnings per share increased close to 9%,” said Mark E. Speese, the Company’s Chairman and Chief Executive Officer. “The RAC Acceptance segment performed exceptionally well nearly doubling revenue from a year ago to $77 million, with a gross profit margin of 58% and an operating profit of $7 million,” Speese continued.

Key Stats:

The company has now seen its net income rise for three quarters in a row. In the first quarter, net income rose 17.4% and in the fourth quarter of the last fiscal year, the figure rose 54.8%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the first quarter, by 3 cents in the fourth quarter of the last fiscal year, and by 2 cents in the third quarter of the last fiscal year.

Revenue has increased for four consecutive quarters. Revenue increased 12.5% to $835.3 million in the first quarter. The figure rose 8.9% in the fourth quarter of the last fiscal year from the year earlier and climbed 6% in the third quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Expectations for the company’s next-quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the third quarter has risen to 69 cents per share from 67 cents. Over the past three months, the average estimate for the fiscal year has climbed from $3.12 per to share to $3.13.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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