RCII

26-Oct-15 16:05 ET
Rent-A-Center beats by $0.02, misses on revs; guides Q4 EPS below consensus; guides FY15 EPS below consensus  (25.78)
  • Reports Q3 (Sep) earnings of $0.47 per share, $0.02 better than the Capital IQ Consensus of $0.45; revenues rose 3.6% year/year to $791.6 mln vs the $802.73 mln Capital IQ Consensus.
  • Co issues downside guidance for Q4, sees EPS of $0.52-0.62 vs. $0.68 Capital IQ Consensus Estimate.
  • Co issues downside guidance for FY15, sees EPS of $2.00-2.10 vs. $2.15 Capital IQ Consensus Estimate.

Courtesy of Briefing.com

RCII reported on the 26th and guided down substantially for the next quarter and slightly for the year. This created a great opportunity for traders and investors.

There trailing earnings are 1.99 and at 17 bucks their P/E is 8.5. Projected earnings are 2.00 to 2.10 next year which puts their value at 30 bucks.

First target is 20.75 and then 23.50—23.50 could take some time.

Dave C

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