Why Shares of Aaron's Declined 15% Tuesday Morning
Shares of Aaron's (NYSE: AAN), a leading provider of lease-purchase solutions, dropped over 15% Tuesday morning after the company released disappointing third-quarter results.
Starting from the top, revenue checked in with a 1.1% gain compared with the prior year, to $963.81 million, which missed analysts' estimates calling for $975.21 million. The bottom line also failed to impress with adjusted earnings per share of $0.73 during the third quarter, missing analysts' estimates calling for $0.82 per share. Although total Aaron's customers at the end of the quarter increased 5.6%, same-store revenue declined 2.9% during the third quarter. "While the third quarter was challenging, both Progressive and the Aaron's Business accomplished key objectives, which we believe significantly improve our long-term prospects for growth," CEO John Robinson said in a press release.
Televisions are just one of the products Aaron's leases. Image source: Getty Images.
Source Fool.com
