The Aaron's Company ( NYSE: AAN ) shares declined sharply in Wednesday’s extended trading after a Q4 sales miss and weak forecast for 2023 overshadowed a big profit beat.
For the fourth quarter, the Atlanta-based rental company reported $0.09 in adjusted earnings per share, far outpacing expectations at just one cent. However, $589.6M in revenue came up narrowly short of expectations. It is also worth noting that acquisition and restructuring related costs would have driven EPS on a non-adjusted basis to a $0.19 loss.
Moving forward, management expects between $2.2B and $2.3B, below the $2.37B consensus expectation. An adjusted EPS guide of between $0.70 and $1.10 came in well below the $1.66 consensus. An adjusted EBITDA forecast of between $140M and $160M likewise disappointed in comparison to a $171.3M consensus forecast.
“Our 2023 outlook reflects the current macroeconomic pressure on customer demand and a lower lease portfolio size to start the year,” CEO Douglas Lindsay explained. “We believe the second half of the year will improve as we benefit from stronger customer demand and payment activity and ongoing cost reductions.”
Aaron’s stock slumped 7.99% after the bell on Wednesday.
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Aaron’s stock slides on revenue miss, cautious forecast