Rent-A-Center (RCII) Misses Q1 EPS by 16c

Rent-A-Center (NASDAQ: RCII) reported Q1 EPS of ($0.08), $0.16 worse than the analyst estimate of $0.08. Revenue for the quarter came in at $698 million versus the consensus estimate of $699.84 million.

2018 Selected Guidance

As the Company remains in the midst of a strategic and financial alternatives review process, the following selected guidance is being updated at this time:

The Company has identified annualized cost savings opportunities of $75 to $95 million, increased from the previously communicated range of $65 to $85 million. The Company expects two thirds of the benefit to be realized in 2018. These cost savings opportunities include:

• Overhead of $30 to $40 million
• Supply Chain of $35 to $40 million, an increase from the previous guidance of $25 to $30 million
• Other Store Expenses of $10 to $15 million

Working capital benefits of $40 to $45 million, an increase from the previous guidance of $20 to 25 million, 100 percent of which is expected to be realized in 2018

Free Cash Flow of at least $170 million, an increase from the previous guidance of at least $130 million

For earnings history and earnings-related data on Rent-A-Center (RCII) click here.

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