Aaron's (NYSE: AAN) reported Q1 EPS of $0.85, $0.08 better than the analyst estimate of $0.77. Revenue for the quarter came in at $1.1 billion versus the consensus estimate of $1.05 billion.

Goodwill Impairment

The Company concluded that the need for an interim goodwill impairment test was triggered for the Aaron's Business segment as of March 31, 2020, primarily as a result of a significant decline in the Company's stock price and market capitalization in March 2020 as well as other factors. With the assistance of a third-party valuation firm, we determined that the Aaron's Business goodwill was fully impaired, and, as a result, recorded a non-cash goodwill impairment charge of $446.9 million during the three months ended March 31, 2020. This assessment entailed estimating the Aaron's Business reporting unit's fair value and comparing this estimate to the carrying value. The estimated fair value was derived using a combination of income and market approaches. A more complete description of the goodwill impairment test and resulting charge can be found in the Company's Form 10-Q, that we expect to file today.

2020 Outlook

On March 23, the Company withdrew its full year 2020 financial outlook, previously issued on February 20, 2020, due to the uncertainties resulting from COVID-19.

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