The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Aaron's met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew, and GAAP earnings per share improved.
Gross margins increased, operating margins dropped, and net margins dropped.
Aaron's logged revenue of $523.5 million. The 11 analysts polled by S&P Capital IQ expected a top line of $520.1 million on the same basis. GAAP reported sales were 8.1% higher than the prior-year quarter's $484.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.43. The 12 earnings estimates compiled by S&P Capital IQ averaged $0.43 per share on the same basis. GAAP EPS of $0.40 for Q4 were 8.1% higher than the prior-year quarter's $0.37 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 52.8%, 210 basis points better than the prior-year quarter. Operating margin was 9.6%, 90 basis points worse than the prior-year quarter. Net margin was 5.8%, 60 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $572.2 million. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $2.18 billion. The average EPS estimate is $1.97.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 132 members rating the stock outperform and 19 members rating it underperform. Among 56 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 49 give Aaron's a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Aaron's is outperform, with an average price target of $30.21.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.