Aaron's (NYSE: AAN) reported Q3 EPS of $0.50, $0.04 better than the analyst estimate of $0.46. Revenue for the quarter came in at $769 million versus the consensus estimate of $778.73 million.

Further Steps to Restructure Core Business

During the third quarter, the Company implemented a range of expense reductions to drive further cost efficiencies in the core business. In addition, as previously disclosed, the Company continues to review its store base and plans to close underperforming stores, including the closure of 56 stores by the end of October. Additional stores are expected to be closed in 2017.

The restructuring expense and store closure initiatives resulted in a pre-tax charge of approximately $4.7 million in the third quarter of fiscal 2016. The Company expects to incur an additional pre-tax charge of approximately $13 million in the fourth quarter of 2016 to complete the closure of the 56 stores discussed above.

2016 Outlook Update

The Company is updating certain elements of its outlook for the 2016 year to reflect the restructuring expense and store closure initiatives announced today and current trends in the business. The Company currently expects to achieve the following:

Core Business

• Quarterly same store revenues of approximately negative 5% to negative 3% for the remainder of 2016;
• Adjusted EBITDA in the range of $195 million to $205 million, compared with the previous outlook of $195 million to $215 million;

Progressive

• EBITDA in the range of $140 million to $150 million compared with the previous outlook of $135 million to $145 million;

Consolidated Results

• Adjusted EBITDA in the range of $330 million to $350 million compared with the previous outlook of $325 million to $355 million;
• GAAP diluted earnings per share in the range of $1.79 to $1.93 compared with the previous outlook of $1.92 to $2.12; and
• Non-GAAP diluted earnings per share in the range of $2.16 to $2.30 compared with the previous outlook of $2.13 to $2.33. (The Street sees EPS of $2.37.)

For earnings history and earnings-related data on Aaron's (AAN) click here.