Aaron's (AAN) Tops Q4 EPS by 8c

Aaron's (NYSE: AAN) reported Q4 EPS of $1.15, $0.08 better than the analyst estimate of $1.07. Revenue for the quarter came in at $1 billion versus the consensus estimate of $1.01 billion.

"Aaron's finished the year on a positive note with record annual revenues, adjusted EBITDA and non-GAAP EPS. Progressive's invoice growth accelerated significantly in the fourth quarter, up 34.4% compared to the prior year. In addition, collections performance at the Aaron\'s Business improved significantly during the quarter, contributing to positive same-store revenues and strong adjusted EBITDA," said John Robinson, Chief Executive Officer.

"Finally, I'm pleased to report that Progressive has reached an agreement in principle with the staff of the FTC regarding the Civil Investigative Demand Progressive received in July 2018. Under the proposed agreement, which requires final approval by FTC Commissioners and the U.S. District Court for the Northern District of Georgia, Progressive will make a payment of $175 million and enhance certain compliance-related activities, including monitoring, disclosure and reporting requirements. We have agreed to settle this matter to avoid the distraction and uncertainty caused by protracted litigation and allow Progressive to remain focused on providing competitive, flexible and affordable purchase options to credit-challenged consumers," Mr. Robinson concluded.

GUIDANCE:

Aaron's sees FY2020 EPS of $3.80-$4.00, versus the consensus of $4.49. Aaron's sees FY2020 revenue of $4.15-4.3 billion, versus the consensus of $4.45 billion.

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

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