PROG Holdings Slips After Cutting Annual Outlook

(RTTNews) - Shares of lease-purchase solutions provider PROG Holdings, Inc. (PRG) are down more than 23% Thursday morning after the company slashed its full-year outlook citing high inflation levels leading to lower demand from the customer base.

For the full-year, PROG currently expects revenue to be between $2.59 billion and $2.69 billion compared with previous outlook of $2.79 billion-$2.9 billion.

Adjusted EPS for the year is expected to be in the range of $2.50-$2.75 compared with prior guidance of $3.25-$3.70.

On average, 7 analysts polled by Thomson Reuters expect the company to report earnings of $3.39 per share on revenue of $2.81 billion for the year.

Further, PROG sees annual provision for lease merchandise write-offs near the high end of 6 to 8 percent.

For the second quarter revenue is expected between $645 million and $655 million. The consensus estimate stands at $668.63 million.

PRG touched a new low of $17.84 this morning, before edging up to $18.26 currently.