Aaron's (NYSE: AAN) reported third-quarter results that came in well above expectations and boosted its full-year guidance, boosted by a big acquisition. Investors are excited about the retailer's future, sending shares up as much as 25% on Tuesday morning.
Aaron's historically has been mostly focused on rent-to-own solutions, and investors came into earnings season worried that with the financial health of the subprime customer under pressure it could be a rough report for the retailer. But Aaron's delivered a present surprise, reporting earnings of $0.31 per share on revenue of $593.4 million. Analysts had expected earnings of $0.12 per share on revenue of $560 million.
The company's results were boosted by the acquisition of electronics retailer BrandsMart USA, which contributed EBITDA of $6.6 million and revenue of $183.3 million in the quarter.
Source Fool.com