Aaron's (AAN) Tops Q4 EPS by 10c, Beats on Revenues; Offers FY18 EPS Mid-Point Outlook Above Consensus, FY18 Revenue Guidance Above Consensus

Note: EPS may not be comparable

Aaron's (NYSE: AAN) reported Q4 EPS of $0.65, $0.10 better than the analyst estimate of $0.55. Revenue for the quarter came in at $884.6 million versus the consensus estimate of $868.21 million.

2018 Guidance

The Company is providing the following guidance for its 2018 fiscal year. Diluted earnings per share is presented both on a GAAP basis and on a non-GAAP basis excluding intangible amortization related to the 2014 Progressive acquisition and the 2017 acquisition of our largest franchisee and any future one-time or unusual items. Adjusted EBITDA also excludes any future one-time or unusual items. The Company currently expects to achieve the following:

Aaron's Inc. (Consolidated)

• Revenues of $3.68 billion to $3.89 billion.
• EBITDA of $380 million to $413 million.
• GAAP diluted earnings per share of $2.90 to $3.20.
• Non-GAAP diluted earnings per share of $3.20 to $3.50.
• Does not include the impact of any potential share repurchase activities.
• Capital expenditures of $70 million to $90 million.

Progressive Leasing

• Total revenues of $1.95 billion to $2.05 billion.
• EBITDA of $215 million to $230 million

Aaron's Business

• Total revenues of $1.70 billion to $1.80 billion, including lease revenues of $1.40 billion to $1.50 billion.
• Annual same store revenues of approximately negative 4% to negative 1%, approaching flat in the fourth quarter.
• EBITDA of $170 million to $185 million.
• The Company will continue to evaluate its store base for strategic growth and consolidation opportunities, which may include both store closures and acquisitions.

DAMI

• Total revenues of approximately $30 million to $40 million.
• EBITDA of approximately negative $5 million to negative $2 million.

GUIDANCE:

Aaron's sees FY2018 EPS of $3.20-$3.50, versus the consensus of $3.23. Aaron's sees FY2018 revenue of $3.68-3.69 million, versus the consensus of $3.66 million.

For earnings history and earnings-related data on Aaron's (AAN) click here.

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