Rent-A-Center, Inc. (NASDAQ:RCII) Shares Sold by AlphaCrest Capital Management LLC. On Monday, March 6th, 2023, Rent-A-Center, Inc. posted results for its fourth-quarter 2022, wherein the top line missed the Zacks Consensus Estimate, but the bottom line exceeded the same. The company also announced guidance for the year ahead that was below expectations. The company, formerly known as Rent-A-Center, Inc., is now known as Upbound Group, Inc. and will begin to trade under the ticker symbol “UBDG” after the completion of the spin-off process.
Rent-A-Center, Inc. reported fourth-quarter 2022 revenue of $2.0 billion, which missed the Zacks Consensus Estimate of $2.1 billion. Revenue was down 4.4% year-over-year. Rent-A-Center, Inc.’s revenue was primarily driven by its core rental business, which accounted for 94% of revenue. The company also reported fourth-quarter 2022 net income of $2.6 million, or $0.04 per share, which exceeded the Zacks Consensus Estimate of $0.02 per share.
The company also provided guidance for the year ahead. Rent-A-Center, Inc. expects revenue to be in the range of $7.8 billion to $8.2 billion, which is below the Zacks Consensus Estimate of $8.4 billion. The company also expects earnings per share in the range of $0.50 to $0.60 per share, which is below the Zacks Consensus Estimate of $0.62.
In conjunction with the results, Rent-A-Center, Inc. also released a slide deck, which can be found here. The deck showed that the company’s core rental business is performing well, with customers increasingly opting for more expensive items. The company also noted that its e-commerce business is growing rapidly, with sales up by 48% year-over-year.
Rent-A-Center, Inc. also noted that its Acima business, which was spun off in 2020, is performing well. The company noted that Acima’s net promoter score (NPS) is growing and that the business is on track to achieve its goal of $1 billion in annual revenue by the end of 2022.
Finally, the company reaffirmed its commitment to its store optimization program, which is focused on improving the customer experience and increasing store efficiency. The company noted that it is on track to close or relocate more than 500 stores by the end of 2022.
Overall, Rent-A-Center, Inc. posted mixed results for its fourth-quarter 2022. The company’s revenue missed expectations, but its bottom line exceeded them. The company also provided guidance for the year ahead that was below expectations. However, the company’s core rental business is performing well and its e-commerce business is growing rapidly. The company’s Acima business is also performing well and is on track to achieve its goal of $1 billion in annual revenue by the end of 2022.
