Rent-A-Center 3Q revenue falls short of estimates
PLANO, Texas (AP) — Rental furniture outlet Rent-A-Center Inc. said Monday that its third-quarter net income rose 28 percent on an uptick in revenue thanks to a fast-growing division that provides rental contracts to customers at third-party stores who don't qualify for credit.
Net income in the three months to Sept. 30 grew to $39.9 million, or 67 cents per share, from $31.2 million, or 52 cents per share, a year earlier.
Analysts polled by Factset were looking for 67 cents per share.
Revenue rose 5 percent to $739.3 million, falling short of the $756.1 million expected by analysts.
The company said revenue at its RAC Acceptance unit, which operates out of kiosks at third-party retailers, rose 63 percent to $83.8 million. It opened kiosks at 100 new locations in the quarter for a total of 882 at the end of the period.
The company expects earnings per diluted share of $3.05 to $3.15 on revenue of $3.08 billion to $3.13 billion for the full year.
The midpoint of the guidance was below analysts' consensus forecast for $3.14 per share on revenue of $3.14 billion.
Shares fell $1.90, or 5.7 percent, to $31.50 in after-hours trading. In the regular session the stock fell 28 cents to close at $33.40.