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Stock Market & Financial Investment News

News Breaks
January 28, 2014
11:42 EDTCONN, AAN, RCIIRent-A-Center plunges after 'most challenging December in years' dings profit
Rent-to-own operator Rent-A-Center (RCII) is one of today's losers after the company's fourth quarter results and fiscal 2014 profit guidance fell significantly below expectations. WHAT'S NEW: Last night, Rent-A-Center reported fourth quarter earnings per share of 25c and revenue of $769.6M, compared to analysts' consensus estimates of 75c and $787.95M, respectively. Same-store sales declined 1.1% for the company in the quarter. The company forecast FY14 EPS of $2.30-$2.50, compared to consensus of $3.20, and revenue growth of 4.5%-7.5%. The company expects same-store sales to be up 3%-5.5% this fiscal year. The company said the large profit miss was mainly attributable to a reduction in gross profit in the Core U.S. segment and an overall increase in operating expenses. “We continue to face meaningful headwinds in our domestic U.S. rent-to-own business, including a customer under severe economic pressure and an intensified promotional environment. These conditions significantly impacted our Core U.S. segment customer agreement growth in December, which was the most challenging in years," said Rent-A-Center CEO Mark Speese. ANALYST REACTION: In a note to investors this morning, research firm Canaccord Genuity maintained a Hold rating on the shares with a $31 price target. The firm said they would remain on the sidelines as the company's core rent-to-own business was struggling and there was no clear catalyst in place to revive it. Canaccord added that the company's 2014 guidance suggests its collections costs are "sky-rocketing." PRICE ACTION: In late morning trading, Rent-A-Center shares tumbled over 19% to $25.12 on nearly seven times its average daily trading volume. Earlier in the session, the stock hit a fresh 52-week low of $24.75. Over the past twelve months, the stock has lost approximately 28%. OTHERS TO WATCH: Rent-A-Center's competitors include Aaron's (AAN) and CONN's (CONN). Shares of Aaron's were up 1% in morning trading, while CONN's slipped 0.5%.
News For RCII;AAN;CONN From The Last 14 Days
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April 1, 2015
10:33 EDTCONNOptions with decreasing implied volatility
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March 31, 2015
09:28 EDTCONNOn The Fly: Pre-market Movers
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06:07 EDTCONNConn's sees Q1 percent of bad debt charge-offs to average 12.5%-13.5%
Sees Q1 interest income fee yield to be between 17%-17.5%.
06:06 EDTCONNConn's sees FY16 SSS to be flat to up low single digits
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06:06 EDTCONNConn's to discontinue offering video game products, digital cameras in FY16
The company will also discontinue offering certain tablets in 2015. The company said it experienced significantly higher charge-off rates and lower product margins associated with purchases of these products by customers.
06:05 EDTCONNConn's reports Q4 EPS 42c, consensus 63c
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March 30, 2015
15:24 EDTCONNNotable companies reporting before tomorrow's open
Notable companies reporting before tomorrow's market open, with earnings consensus, include SAIC (SAIC), consensus 71c... Conn's (CONN), consensus 63c... Movado (MOV), consensus 20c... Dangdang (DANG), consensus 6c.
08:20 EDTCONNConn's April volatility elevated into Q4 and outlook
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March 27, 2015
10:03 EDTCONNOn The Fly: Analyst Upgrade Summary
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09:26 EDTCONNOn The Fly: Pre-market Movers
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06:54 EDTCONNConn's upgraded to Overweight from Neutral at Piper Jaffray
Piper Jaffray upgraded Conn's to Overweight with a $38 price target saying portfolio stability will drive earnings upside.
March 24, 2015
11:14 EDTCONNConn's April volatility elevated into Q4 and outlook
Conn's April call option implied volatility is at 87, May is at 67, July is at 64, October is at 59; compared to its 26-week average of 62 according to Track Data, suggesting large near term price movement into the expected release of Q4 results on March 31.

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