Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
So what: In the quarter, Aaron's had revenue of $452.2 million and net income of $26.2 million, or $0.32 per share. Both numbers crushed analysts' expectations, pushing shares higher -- too high for a minute when a 12% increase triggered circuit breakers this morning.
Now what: Earnings were up 6% and revenue was up 9%, showing Aaron's business is getting stronger. Aaron's rents and sells furniture, appliances, and computers. I like the stronger results, and a forward price/earnings of 12.5 looks very attractive considering newfound traction. I'm buying this move as the start of a move upward.
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