Rent-A-Center projects 2nd-qtr profit below estimates

Rent-A-Center Inc., the nation's largest rent-to-own operator, on Monday projected second-quarter income below analyst estimates.

The company expects profit between 53 cents and 59 cents per share for the period, with revenue between $701 million and $716 million.

Analysts polled by Thomson Financial predict earnings of 60 cents per share on revenue of $712.9 million.

For the period, Rent-A-Center forecast flat same-store sales, or sales at stores open at least a year. Same-store sales is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.

The company added it will open 5 new rent-to-own store locations and will add financial services to about 25 rent-to-own store locations.

For the full fiscal year, Rent-A-Center said it expects profit between $2.17 and $2.32 per share on revenue between $2.87 billion and $2.91 billion.

Analysts anticipate earnings of $2.21 per share on revenue of $2.88 billion.

Rent-A-Center also reported first-quarter profit above analyst estimates.

Shares rose $1.48, or 7.3 percent, to $21.75 in electronic after-hours trading. During regular trading, shares climbed 33 cents to close at $20.27. The stock has ranged from $11.67 to $29.20 over the past year.