Aaron's Q1 Profit Declines; Updates Q2 & FY14 Guidance - Quick Facts

(RTTNews) - Aaron's Inc. (AAN) reported that its first-quarter net earnings decreased to $38.3 million from $51.0 million last year. Earnings per share were $0.53 compared to $0.67, a year ago.

Ronald Allen, CEO of Aaron's, said: "Same store revenue and customer growth in both Company-operated and franchised stores declined in the quarter. Approximately 70% of Company-operated stores have been identified as having operations adversely impacted by the severe weather events that occurred during the first three months of the year. This includes a significant number of store closings as well as elevated utility and maintenance expenses."

On average, eight analysts polled by Thomson Reuters expected the company to report profit per share of $0.53 for the quarter. Analysts' estimates typically exclude special items.

Revenues decreased 1% to $585.4 million from $593.0 million. Analysts expected revenue of $591.08 million for the quarter. Same store revenues decreased 2.1% during the first quarter of 2014 .

Aaron's updated its guidance for the second quarter and full year 2014 to reflect the Progressive acquisition.

The company expects its consolidated second quarter revenues (excluding revenues of franchisees) of approximately $675 million. Second quarter adjusted earnings per share is expected to be in in the range of $0.43 to $0.48. Analysts expect the company to report second-quarter profit per share of $0.56 on revenue of $703.50 million.

Aaron's expects its fiscal 2014 revenues (excluding revenues of franchisees) in the range of $2.65 billion to $2.75 billion. Fiscal 2014 adjusted earnings per share is expected to be in the range of $1.95 and $2.10. Analysts expect the company to report 2014 profit per share of $1.99 on revenue of $2.74 billion.

The company expects fiscal 2015 revenues (excluding revenues of franchisees) in the range of $3.25 billion to $3.35 billion. Fiscal 2015 adjusted earnings per share is expected to be in the range of $2.55 to $2.80.