AAN - Why Aaron's Stock Dived by Nearly 19% Today
2024-02-27 18:53:00 ET
Rent-to-own home goods specialist Aaron's (NYSE: AAN) did not exactly have a top Tuesday on the equities market. The company's stock closed the day almost 19% lower in price "thanks" to a quarterly-earnings report that did not meet expectations either for trailing fundamentals or guidance. Meanwhile, the S&P 500 index managed to defy gravity slightly, rising by just under 0.2%.
After market hours on Monday, Aaron's took the wraps off its fourth quarter and full-year 2023 figures. For the former period, revenue came in at $529.5 million, representing a year-over-year decline of slightly more than 10%. More discouragingly, on the bottom line the company flipped to a non- GAAP (adjusted) net loss. This amounted to nearly $7.8 million ($0.26 per share) against a profit of $2.8 million in the year-ago quarter.
Analysts tracking Aaron's stock were expecting better. On average, their estimate for revenue was a bit more than $542 million, while they believed the non-GAAP bottom line would show a profit of $0.03 per share.
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Why Aaron's Stock Dived by Nearly 19% Today