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Stock Market & Financial Investment News

News Breaks
January 28, 2014
11:42 EDTRCII, AAN, CONNRent-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
Check below for free stories on RCII;AAN;CONN the last two weeks.
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July 28, 2014
08:19 EDTAANAaron's price target lowered to $35 from $42 at Stifel
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July 25, 2014
07:14 EDTAANAaron's sees FY14 adjusted EPS $1.65-$1.75, consensus $1.76
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07:13 EDTAANAaron's sees Q3 adjusted EPS 36c-41c, consensus 46c
Sees Q3 excluding franchisees revenue $695M, consensus $701.64M; Sees Q3 Progressive revenue $175M; Sees Q EBITDA for Progressive $15M-$17M
07:12 EDTAANAaron's identified more than $50M in potential annual cost savings
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07:10 EDTAANAaron's reports Q2 adjusted EPS 37c, consensus 35c
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July 24, 2014
19:10 EDTAANAaron's announces COO Dave Buck to retire
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15:29 EDTAANNotable companies reporting before tomorrow's open
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July 21, 2014
16:38 EDTRCIIRent-A-Center sees FY14 EPS $2.00-$2.15, consensus $2.09
Sees FY14 revenue up 2.5%-4%. Sees FY14 SSS up 1.5%-2.5%. Sees FY14 EBITDA $300M-$310M.
16:36 EDTRCIIRent-A-Center sees Q3 EPS 43c-51c, consensus 55c
Sees Q3 revenue up 2%-3%. Sees Q3 SSS up 2%-3%.
16:33 EDTRCIIRent-A-Center reports Q2 adjusted EPS 38c, consensus 38c
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15:30 EDTRCIINotable companies reporting after market close
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12:08 EDTRCIIRent-A-Center technical commentary ahead of results
Shares have underperformed the broader averages, trading lower by more than 5% in the last three months. At the current price of $24.15, price is close to the 52-week low at $23.65. On further disappointment in results or outlook tonight, that low could easily be taken out on the downside. Additional support levels to watch as potential downside objectives would be at $22.90, $21.30, and $19.85. If the news comes in better than expected, traders should be aware that over 17% of the float is short. That could provide fuel for a short-squeeze if the fundamentals provide the right catalyst. Resistance levels to be aware of as potential upside objectives on an increasing band of positive surprise are at $25.96, $27.47, $28.53, and $29.26.
July 16, 2014
06:37 EDTAAN, CONN, RCIIConn's recent sell-off a buying opprotunity, says Piper Jaffray
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July 15, 2014
12:21 EDTAANOn The Fly: Midday Wrap
Stocks on Wall Street were lower at midday despite better than expected quarterly reports from two of the nation's largest financial institutions. Stock futures improved during the pre-market trading session, leading to a higher open for the broader market, following better than expected earnings reports from JP Morgan (JPM) and Goldman Sachs (GS). The earnings news also came alongside another huge M&A deal, as tobacco giants Reynolds American (RAI) and Lorillard (LO) confirmed plans to merge. However, the major averages weakened throughout the morning and fell into negative ground against the backdrop of Fed Chair Janet Yellen giving testimony on Capital Hill. In the Board of Governors' Monetary Policy Report, the central bank said valuation metrics in "some sectors" appear substantially stretched, "particularly those for smaller firms in the social media and biotechnology industries." ECONOMIC EVENTS: In the U.S., retail sales increased 0.2% in June compared to the month prior, making for the weakest reading since January and missing the consensus forecast for an increase of 0.6%. The Empire State manufacturing index climbed to a four-year high of 25.6 in July, beating expectations for a reading of 16.5. Import prices rose 0.1% in June, with export prices slipping 0.4%. Business inventories grew 0.5% in May, which was just below the 0.6% consensus growth expectation. In Europe, Germany's ZEW survey missed expectations, as both its Current Situation and Expectations reading were lower than forecast. COMPANY NEWS: Shares of JPMorgan advanced nearly 4% after the bank reported a profit of $1.46 a share, which included a legal expense of 13c a share, beating analysts' consensus forecast of $1.29. The earnings report comes after CEO Jamie Dimon recently disclosed that he has throat cancer. During the company's conference call, Dimon said he was "feeling great," that doctors had found no evidence of cancer anywhere except in the location where it had originally been detected, and that his prognosis for recovery is "excellent"... Also in the large-cap bank sector, Goldman Sachs' headline earnings and revenue similarly beat expectations. The firm, which said it ranks first in worldwide announced and completed mergers and acquisitions for the year-to-date, advanced about 1% following its report... Along with JPMorgan in the Dow Jones Industrial Average, Johnson & Johnson (JNJ) reported quarterly sales and profits that beat expectations and the healthcare conglomerate raised its fiscal year EPS view to $5.85-$5.92 from $5.75-$5.85. However, its increased outlook range still fell short of the $5.90 per share consensus forecast that analysts had prior to its report... Reynolds American confirmed news that has been speculated for many weeks, announcing that it will acquire peer Lorillard in a cash-and-stock transaction currently valued at $68.88 per Lorillard share, or a total of $27.4B, including the assumption of net debt. Shares of both fell afterward, with Lorillard down 8% to trade near $61.75 at midday and Reynolds slipping 5%. MAJOR MOVERS: Among the notable gainers was small-cap pharma biotechnology research company Codexis (CDXS), which surged nearly 50% after announcing a collaboration and license agreement with GlaxoSmithKline (GSK). Among the noteworthy losers was Aaron's (AAN), which is engaged in the lease ownership and retail sale of a variety of consumer products. Its stock fell over 6% after the company lowered its second quarter outlook, citing lower than expected performance of its core business as the reason for the revision. INDEXES: Near midday, the Dow was down 33.45, or 0.2%, to 17,021.97, the Nasdaq was down 40.48, or 0.91%, to 4,399.94, and the S&P 500 was down 9.24, or 0.47%, to 1,967.86.
11:34 EDTRCII, CONN, AANAaron's falls after cutting second quarter outlook
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08:34 EDTAANAaron's expects to close 44 stores by the end of Q3
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08:34 EDTAANAaron's sees Q2 preliminary adjusted EPS 34c-37c, consensus 46c
Sees Q2 preliminary revenue $672M, consensus $677.99M.
08:16 EDTCONNConn's management to meet with Oppenheimer
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