Aaron's (NYSE:PRG) Issues FY 2025 Earnings Guidance

Key Points

• Aaron's has issued FY 2025 earnings guidance with an expected EPS range of 3.350-3.450, slightly above the consensus estimate of 3.330, but revenue guidance is set at $2.4 billion, below the expected $2.5 billion.
• The company's stock increased by 3.2% following the announcement, and has a market capitalization of $1.30 billion.
• Aaron's recently declared a quarterly dividend of $0.13 per share, which equates to an annualized dividend yield of 1.6%.

Aaron's (NYSE:PRG - Get Free Report) issued an update on its FY 2025 earnings guidance on Wednesday morning. The company provided earnings per share (EPS) guidance of 3.350-3.450 for the period, compared to the consensus estimate of 3.330. The company issued revenue guidance of $2.4 billion-$2.4 billion, compared to the consensus revenue estimate of $2.5 billion. Aaron's also updated its Q4 2025 guidance to 0.550-0.650 EPS.

Aaron's Stock Up 3.2%

Shares of NYSE:PRG opened at $32.77 on Wednesday. The company has a market capitalization of $1.30 billion, a PE ratio of 6.48 and a beta of 1.79. 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 has a twelve month low of $23.50 and a twelve month high of $49.90. The firm has a 50 day simple moving average of $33.65 and a 200-day simple moving average of $30.44.

Aaron's (NYSE:PRG - Get Free Report) last issued its quarterly earnings data on Wednesday, July 23rd. The company reported $1.02 earnings per share for the quarter, topping the consensus estimate of $0.79 by $0.23. The business had revenue of $604.66 million during the quarter, compared to the consensus estimate of $586.25 million. Aaron's had a net margin of 8.53% and a return on equity of 22.54%. The company's revenue was up 2.1% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.92 EPS. On average, equities analysts predict that Aaron's will post 3.45 EPS for the current fiscal year.

Aaron's Dividend Announcement

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

Analyst Ratings Changes

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

Institutional Trading of Aaron's

Institutional investors and hedge funds have recently bought and sold shares of the business. WealthCollab LLC raised its position in Aaron's by 61.9% in the 2nd quarter. WealthCollab LLC now owns 2,092 shares of the company's stock valued at $61,000 after purchasing an additional 800 shares during the last quarter. Caxton Associates LLP acquired a new position in Aaron's in the 1st quarter valued at $233,000. Tidal Investments LLC acquired a new position in Aaron's in the 2nd quarter valued at $260,000. State of Wyoming increased its stake in Aaron's by 26.7% in the 2nd quarter. State of Wyoming now owns 10,235 shares of the company's stock valued at $300,000 after buying an additional 2,157 shares during the period. Finally, Headlands Technologies LLC increased its stake in Aaron's by 40.7% in the 2nd quarter. Headlands Technologies LLC now owns 11,395 shares of the company's stock valued at $334,000 after buying an additional 3,297 shares during the period. Hedge funds and other institutional investors own 97.92% of the company's stock.

About Aaron's

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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