Zacks: Analysts Anticipate Aaron’s, Inc. (AAN) to Announce $0.78 EPS

Wall Street brokerages expect Aaron’s, Inc. (NYSE:AAN) to report earnings of $0.78 per share for the current quarter, Zacks reports. Seven analysts have issued estimates for Aaron’s’ earnings, with the highest EPS estimate coming in at $0.86 and the lowest estimate coming in at $0.67. Aaron’s reported earnings of $0.68 per share in the same quarter last year, which indicates a positive year over year growth rate of 14.7%. The company is expected to announce its next quarterly earnings report on Friday, July 27th.

According to Zacks, analysts expect that Aaron’s will report full year earnings of $3.35 per share for the current fiscal year, with EPS estimates ranging from $3.26 to $3.44. For the next year, analysts forecast that the company will post earnings of $3.85 per share, with EPS estimates ranging from $3.30 to $4.66. Zacks’ EPS calculations are a mean average based on a survey of research analysts that cover Aaron’s.

Aaron’s (NYSE:AAN) last issued its earnings results on Thursday, April 26th. The company reported $0.81 EPS for the quarter, missing the Zacks’ consensus estimate of $0.95 by ($0.14). The company had revenue of $954.81 million for the quarter, compared to analysts’ expectations of $926.74 million. Aaron’s had a return on equity of 11.22% and a net margin of 8.34%. The business’s revenue was up 13.1% compared to the same quarter last year. During the same period last year, the business posted $0.80 earnings per share.

A number of brokerages have recently commented on AAN. Loop Capital raised shares of Aaron’s from a “hold” rating to a “buy” rating in a research report on Monday, April 30th. KeyCorp raised their target price on shares of Aaron’s from $50.00 to $54.00 and gave the stock an “overweight” rating in a research report on Friday, February 16th. Zacks Investment Research lowered shares of Aaron’s from a “hold” rating to a “sell” rating in a research report on Tuesday, April 24th. SunTrust Banks reissued a “buy” rating on shares of Aaron’s in a report on Friday, February 16th. Finally, Piper Jaffray Companies lifted their price objective on shares of Aaron’s from $42.00 to $45.00 and gave the company a “hold” rating in a report on Thursday, February 15th. Two equities research analysts have rated the stock with a sell rating, three have assigned a hold rating, nine have issued a buy rating and one has given a strong buy rating to the stock. Aaron’s currently has an average rating of “Buy” and an average target price of $46.36.

In other Aaron’s news, CEO Ryan K. Woodley sold 12,500 shares of the firm’s stock in a transaction that occurred on Monday, April 30th. The shares were sold at an average price of $42.35, for a total value of $529,375.00. Following the completion of the sale, the chief executive officer now directly owns 157,950 shares in the company, valued at $6,689,182.50. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, CAO Robert W. Kamerschen sold 2,000 shares of the firm’s stock in a transaction that occurred on Monday, April 30th. The shares were sold at an average price of $42.38, for a total transaction of $84,760.00. Following the completion of the sale, the chief accounting officer now owns 38,929 shares of the company’s stock, valued at $1,649,811.02. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 39,500 shares of company stock valued at $1,673,785. 2.28% of the stock is owned by insiders.

Several large investors have recently bought and sold shares of AAN. Schwab Charles Investment Management Inc. boosted its stake in Aaron’s by 3.4% during the 4th quarter. Schwab Charles Investment Management Inc. now owns 496,791 shares of the company’s stock worth $19,798,000 after purchasing an additional 16,354 shares during the period. SG Americas Securities LLC increased its holdings in Aaron’s by 19.6% during the 4th quarter. SG Americas Securities LLC now owns 16,301 shares of the company’s stock valued at $650,000 after acquiring an additional 2,672 shares in the last quarter. Zurcher Kantonalbank Zurich Cantonalbank increased its holdings in Aaron’s by 36.5% during the 4th quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 9,274 shares of the company’s stock valued at $370,000 after acquiring an additional 2,479 shares in the last quarter. US Bancorp DE increased its holdings in Aaron’s by 328.7% during the 4th quarter. US Bancorp DE now owns 20,240 shares of the company’s stock valued at $807,000 after acquiring an additional 15,519 shares in the last quarter. Finally, ING Groep NV increased its holdings in Aaron’s by 23.3% during the 4th quarter. ING Groep NV now owns 9,396 shares of the company’s stock valued at $374,000 after acquiring an additional 1,773 shares in the last quarter.

Shares of Aaron’s traded up $0.03, reaching $44.00, during trading on Friday, MarketBeat reports. 443,461 shares of the company were exchanged, compared to its average volume of 755,061. The firm has a market cap of $2.98 billion, a PE ratio of 17.30 and a beta of 0.06. Aaron’s has a 12-month low of $34.29 and a 12-month high of $49.77. The company has a debt-to-equity ratio of 0.20, a quick ratio of 0.86 and a current ratio of 2.74.

The company also recently announced a quarterly dividend, which will be paid on Friday, July 6th. Shareholders of record on Tuesday, June 19th will be paid a $0.03 dividend. The ex-dividend date of this dividend is Monday, June 18th. This represents a $0.12 annualized dividend and a yield of 0.27%. Aaron’s’s dividend payout ratio (DPR) is 4.69%.

Aaron’s announced that its Board of Directors has authorized a stock buyback plan on Thursday, February 15th that permits the company to repurchase $500.00 million in shares. This repurchase authorization permits the company to repurchase shares of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

About Aaron’s

Aaron's, Inc operates as an omnichannel provider of lease-purchase solutions. It operates through three segments: Progressive Leasing, Aaron's Business, and DAMI. The company engages in the sale, lease ownership, and specialty retailing of furniture, consumer electronics, home appliances, and accessories.

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Earnings History and Estimates for Aaron`s (NYSE:AAN)

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