Rent-A-Center (NASDAQ: RCII) highlighted weaker-than-expected demand along side a miss on earnings. The rental company reported adjusted prelim. Q2 EPS of $0.36-$0.38 compared with the $0.48 consensus. The slowdown in activity isn't a one-off excuse being used soley by Rent-A-Center. Numerous firms have come out this week to comment on the weak American economy, not the weather, being the culprit for slow demand growth.
Rent-A-Center joins many other companies who have come out to blame the economy for weak demand, weak earnings, cuts in forward guidance, instead of blaming the weather. Bob Evans (NASDAQ: BOBE), Lumber Liquidators (NYSE: LL), Tractor Supply (NASDAQ: TSCO), Potbelly (NASDAQ: PBPB), and The Container Store (NYSE: TCS) have come out in the past week to highlight weakening fundamentals causing cuts to Q2 EPS and FY 2014 EPS and Sales numbers.
Rent-A-Center shares fell over 6 percent in after-hours trading on Thursday to $25.62 before rebounding slightly to $26.51.
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