Rent-A-Center (RCII) Preannounces 50% EPS Upside, KeyBanc Raises Estimates

KeyBanc analyst Bradley Thomas reiterated a Sector Weight rating on Rent-A-Center (NASDAQ: RCII) after the company raised its FY20 outlook as business continues to perform well, driven by strong lease portfolio performance and customer payment activity.

The analyst stated "As a result of continued strong QTD performance, including lease portfolio performance and strong customer payment activity, management issued 3Q guidance above consensus. The Company expects 3Q revenues to be $695M-$715M, representing growth of 7.0-10.1% y/y, vs. the current consensus of $687.4M, or 5.9% y/y growth. Adjusted EPS is expected to be $0.95-$1.05, representing growth of 102.1-123.4% y/y from EPS of $0.47 in 3Q19. This compares to the current consensus of $0.61".

For an analyst ratings summary and ratings history on Rent-A-Center click here. For more ratings news on Rent-A-Center click here.

Shares of Rent-A-Center closed at $29.13 yesterday.

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