Aaron's (NYSE:PRG) Announces Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Key Points

• Aaron's reported a quarterly earnings per share (EPS) of $0.90, exceeding analysts' estimates of $0.73 by $0.17.
• The company's revenue declined by 1.8% year-over-year, while it updated its fiscal year 2025 EPS guidance to a range of $3.350 to $3.450.
• Aaron's declared a quarterly dividend of $0.13 per share, representing a yield of 1.6% with a dividend payout ratio of 10.28%.

Aaron's (NYSE:PRG - Get Free Report) posted its quarterly earnings results on Wednesday. The company reported $0.90 EPS for the quarter, topping analysts' consensus estimates of $0.73 by $0.17, Zacks reports. Aaron's had a net margin of 8.53% and a return on equity of 22.54%. During the same period in the previous year, the business earned $0.77 earnings per share. Aaron's's quarterly revenue was down 1.8% on a year-over-year basis. Aaron's updated its FY 2025 guidance to 3.350-3.450 EPS and its Q4 2025 guidance to 0.550-0.650 EPS.

Aaron's Trading Up 3.2%

Shares of Aaron's stock opened at $32.77 on Wednesday. The company has a market capitalization of $1.30 billion, a P/E ratio of 6.48 and a beta of 1.79. The stock has a fifty day simple moving average of $33.65 and a 200 day simple moving average of $30.44. Aaron's has a 12-month low of $23.50 and a 12-month high of $49.90. The company has a current ratio of 5.71, a quick ratio of 2.82 and a debt-to-equity ratio of 0.89.

Aaron's Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Investors of record on Tuesday, August 19th were issued a dividend of $0.13 per share. The ex-dividend date was Tuesday, August 19th. This represents a $0.52 annualized dividend and a yield of 1.6%. Aaron's's dividend payout ratio is 10.28%.

Institutional Trading of Aaron's

Institutional investors and hedge funds have recently made changes to their positions in the company. WealthCollab LLC boosted its holdings in Aaron's by 61.9% during the second quarter. WealthCollab LLC now owns 2,092 shares of the company's stock worth $61,000 after purchasing an additional 800 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in shares of Aaron's by 5.0% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 24,363 shares of the company's stock worth $648,000 after buying an additional 1,162 shares in the last quarter. Engineers Gate Manager LP boosted its stake in shares of Aaron's by 2.3% in the 2nd quarter. Engineers Gate Manager LP now owns 83,628 shares of the company's stock worth $2,454,000 after buying an additional 1,849 shares during the last quarter. State of Wyoming grew its holdings in shares of Aaron's by 26.7% in the second quarter. State of Wyoming now owns 10,235 shares of the company's stock valued at $300,000 after acquiring an additional 2,157 shares in the last quarter. Finally, Headlands Technologies LLC increased its position in shares of Aaron's by 40.7% during the second quarter. Headlands Technologies LLC now owns 11,395 shares of the company's stock valued at $334,000 after acquiring an additional 3,297 shares during the last quarter. Hedge funds and other institutional investors own 97.92% of the company's stock.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on PRG shares. Wall Street Zen cut shares of Aaron's from a "buy" rating to a "hold" rating in a research report on Saturday, October 11th. Weiss Ratings restated a "hold (c)" rating on shares of Aaron's in a report on Wednesday, October 8th. Finally, BTIG Research reiterated a "sell" rating and issued a $27.00 target price on shares of Aaron's in a report on Friday, October 10th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average price target of $41.50.

Aaron's Company Profile

PROG Holdings, Inc NYSE: PRG is a financial technology holding company based in Salt Lake City, Utah with three business segments: Progressive Leasing, which offers lease-to-own transactions primarily to credit-challenged consumers through e-commerce and point-of-sale retail partners, via online, mobile, and in-store solutions; Vive Financial, which provides consumers who may not qualify for traditional prime lending with a variety of second-look, revolving credit products through private label and branded credit cards; and Four Technologies, which provides consumers of all credit backgrounds Buy Now, Pay Later (BNPL) options through four interest-free installments via its platform, Four.

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