Why Aaron's Stock Rocketed 20% on July 29

Shares of rent-to-own specialist Aaron's (NYSE: AAN) took off on Wednesday, rising 20% in the first couple of hours of trading. There were two important pieces of news that drove the stock higher: earnings and the company's plans for a big corporate makeover. At 12:41 p.m. EDT, shares were up 17%.

On the earnings front, Aaron's second-quarter results were pretty good given the COVID-19-related headwinds that the economy has been facing. Revenue advanced 6.4% year over year in the quarter. EBITDA was up 20.9%. And adjusted earnings were up a hefty 26.9%. Clearly Aaron's made out pretty well even in the face of the government-mandated shutdowns of nonessential businesses. That said, the company's two divisions posted vastly different top-line results.

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Source Fool.com