Rent-A-Center Reports Better Q2

(RTTNews) - Texas-based rental service company Rent-A-Center, Inc (RCII) saw their net income rise in the second quarter. Earnings as well as revenue beat analyst estimates.

The net income for the company was $61.30 million or $0.90 earnings per share compared to $38.49 million or $0.70 earnings per share in the last quarter. Excluding special items, the earnings were $110.57 million or $1.63 per share, up from $44.12 million or $0.80 per share last year. Five analysts polled by Thomson Reuters estimated the earnings to be $1.35 per share.

The revenue for the company also went up to $1.19 billion, from $683.74 million last year primarily due to a 232% rise of revenue in the Acima segment. The segment raised $635.30 million compared to $191.24 million last year. Four analysts estimated the revenue to be $1.14 billion.

Rent-A-Center has also raised its full year guidance to revenues in the range of $4.55 to $4.67 billion with earnings of $5.90 to $6.40 per year. Analysts forecast revenue of $4.56 billion with $5.66 earnings per share.

Mitch Fadel, Chief Executive Officer said, "Today's consumers are increasingly seeking shopping options that are flexible, convenient, and offer low financial risk. Rent-A Center has the capabilities to meet these needs through its Acima virtual LTO platform and its highly trusted and convenient Rent-A-Center omni-channel solution."

The shares are trading at $58.72 in the after-hours market, up $1.80 or 3.16% from their previous close. The market closed at $56.92 in the regular market, down $2.20 or 3.72%.