|Bid||19.27 x 800|
|Ask||19.28 x 900|
|Day's Range||19.02 - 20.08|
|52 Week Range||8.12 - 22.77|
|Beta (3Y Monthly)||0.50|
|PE Ratio (TTM)||121.13|
|Earnings Date||Apr 29, 2019 - May 3, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||18.83|
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A Delaware state court has ruled that Rent-A-Center Inc. had the right to end its $1.36 billion merger deal with private equity firm Vintage Capital Management, but didn’t rule on whether the firm and Woodland Hills, California-based B. Riley Financial Inc. may need to pay a reverse breakup fee of $126.5 million.
Retailer Rent-A-Center Inc was within its rights to back out of a $1.36 billion merger deal with private equity firm Vintage Capital Management last year, a Delaware state court ruled Thursday. Vice Chancellor Sam Glasscock III of the Delaware Chancery Court said that Vintage's failure to inform Rent-A-Center that it was extending the merger deal by an agreed-upon date triggered Rent-A-Center's right to call it off under the two parties' contract. Rent-A-Center is a "rent-to-own" business, allowing customers to rent furniture, electronics and other goods with the option of eventually purchasing them.
Vintage officials failed to meet a deadline to extend their offer for Plano, Texas-based Rent-A-Center, clearing the way for the rent-to-own company to pull the plug on the transaction, Delaware Chancery Judge Sam Glasscock III ruled. “It appears that Vintage simply forgot the end date in the merger agreement -- and its implications,” Glasscock said in his 66-page ruling. The judge didn’t say whether Rent-A-Center or Vintage was entitled to $126 million in breakup fees over the deal’s collapse.
Rent-A-Center, Inc. (RCII) (“Rent-A-Center” or the “Company”), a leader in the rent-to-own industry, today announced that following trial, the Court of Chancery of the State of Delaware (the “Court of Chancery”) has ruled that Rent-A-Center validly terminated the Agreement and Plan of Merger (the “Merger Agreement”), dated June 17, 2018, by and among the Company and certain affiliates of Vintage Capital Management, LLC (collectively, “Vintage Capital”).
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.
Today we've highlighted 10 stocks that are currently trading for under $20 per share. All of these stocks sport a Zacks Rank 2 (Buy) or better at the moment, along with a variety of other positive factors that help these companies stand out.
The Zacks Analyst Blog Highlights: Digital Turbine, Boot Barn, Fortinet, Rent-A-Center and Spirit Aero
The fundamentals of the U.S. economy remain strong in 2019 as evident from solid manufacturing, labor market and consumer confidence data.
Rent-A-Center (NASDAQ:RCII) surged higher following the release of fourth-quarter and full-year earnings. The Plano, Texas-based rent-to-own company reported higher profits and revenues than Wall Street had expected. This sent RCII stock price soaring higher in morning trading.Source: Shutterstock Now, with its takeover canceled and profits returning, RCII stock gets a second chance. Given the rising profit growth, Rent-A-Center stock should continue its move higher, at least for now. RCII Beat Quarterly and Yearly EstimatesRent-A-Center reported fourth-quarter earnings of 35 cents per share. This came in well ahead of the 20 cents per share Wall Street had predicted. Revenues of $661.8 million also beat the expected $656.78 million analysts had predicted. The company lost 41 cents per share in the same quarter last year on $638.95 million in revenue.InvestorPlace - Stock Market News, Stock Advice & Trading TipsRCII reported full-year 2018 earnings of $1.06 per share, 14 cents per share ahead of the expected 92 cents per share. On the revenue side, the company brought in just over $2.66 billion, slightly beating the $2.65 billion predicted by Wall Street. * 9 Best Stocks to Buy on U.S.-China Trade Optimism For 2019, the company offered mixed guidance. Rent-A-Center expects to bring in between $2.59 billion and $2.63 billion in 2019. Wall Street had forecasted $2.62 billion. The company also expects earnings between $1.75 and $2.15 per share. Analysts had previously anticipated profits of $1.77 per share. RCII Moves Higher Following Termination of TakeoverThe RCII stock price saw little movement for much of the year. In June, an agreement among affiliates of Vintage Capital Management LLC to acquire the company for $15 per share left the stock with few catalysts. However, Rent-A-Center called off the deal in December. Both RCII and Vintage remain in litigation over the fallout from the termination. However, RCII trades higher than the $15 per share Vintage agreed to pay for the company.The decision to remain independent and public continues amid long-time struggles. The stock has suffered through a multi-year decline since it peaked in 2013 at just over $40 per share. RCII stock fell behind its most direct peer, Aaron's (NYSE:AAN), and its market cap tumbled below $1 billion. The company also found itself in competition with much larger retailers such as Walmart (NYSE:WMT) and Best Buy (NYSE:BBY), who also offer rent-to-own options. Valuation Appears Cheap, but be carefulHowever, earning $1.06 per share for 2018 after a loss the previous year shows the company has turned a corner. This return to positive earnings indicates that the stock could rise over time. As a result, the forward price-to-earnings (P/E) ratio stands at about 10.6, and higher guidance could reduce the multiple further.Still, the P/E ratio may look deceptively cheap. Over the next five years, Wall Street expects profit growth to fall to an average of 5% per year. Moreover, Vintage Capital's lawsuit against RCII remains unresolved. If the court rules against Rent-A-Center, prepare for a temporary disruption in the growth of RCII. I still see RCII stock growing in the near term. However, I remain unconvinced that the stock will return to the $40-plus-per-share record high anytime soon. The Bottom Line on RCII StockProfit growth and the recent earnings beat positions RCII stock--at least for now. Rent-A-Center stock moved higher in morning trading as the firm beat earnings and revenue estimates for both the previous quarter and 2018. Further, forward guidance indicates profits could soar much higher than expected in 2019.Terminating its takeover by Vintage Capital appears to have led to legal troubles. However, with the stock moving well ahead of the $15 per share merger price, Rent-A-Center appears positioned to again prosper as a standalone company. Moreover, a low P/E ratio combined with a near doubling of profits for 2019 could take RCII stock higher for now.Still, investors should keep expectations in check. Analysts think profit growth will slow to single-digit levels in future years. Further, with a market cap around $1 billion, it still must compete with large and mega-cap retailers with their own rent-to-own segments. Also, investors should prepare for any fallout coming from Vintage Capital's lawsuit against RCII.Nonetheless, RCII stock has returned to profitability. Although it may not return to its all-time high anytime soon, it should continue to move higher for the foreseeable future.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The 5 STARS Stocks That Continue to Define the Future * 7 of the Best ETFs to Buy for a Rock-Solid Portfolio * 5 Real Estate Stocks to Buy for Dividend Income Compare Brokers The post Earnings Reaffirm Rent-A-Center Stock's Lease on Life appeared first on InvestorPlace.
Rent-A-Center (RCII) focuses on cost-containment endeavors, driving traffic and augmenting cash flow. It posts better-than-expected results for fourth-quarter 2018.
Rent-A-Center (NASDAQ:RCII) reported a strong quarterly showing for its fourth quarter that included earnings, revenue and same-store sales that came in better than what Wall Street was calling for, sending RCII stock up more than 5% after the bell.Source: FlickrBased out of Plano, Texas, the rent-to-own business ended its fiscal 2019 with quarterly net income of $1.7 million, or 3 cents per share. The figure may have been a fraction of its year-ago profit of $34.8 million, or 65 cents per share, but this piece of data did not tell the whole story.On an adjusted basis, Rent-A-Center tallied up earnings of 35 cents per share, besting the 20 cents a share that Wall Street called for, according to the FactSet guidance.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe furniture and electronics renting service provider raked in revenue of $661.8 million for its fourth quarter, about 3.6% better than the $638.9 million that analysts projected. Analysts were looking at revenue of $655 million for the period, per FactSet.Another important metric for Rent-A-Center is its revenue from rentals and fees, which popped about 3.8% to $565.2 million year-over-year, topping the $556 million that FactSet forecasted. Consolidated same-store sales were up by 9.1%, beating the 8.7% that analysts called for.For its fiscal 2019, the company predicts that it will save costs on certain initiatives that were rolled out in 2018. Plus, it will reduce 2019 expenses by $50 million compared to last year.RCII stock was down 1.1% during regular trading on Monday, but is now up close to 5.7% after hours as a positive earnings report on all fronts proved to be beneficial for investors heading further into 2019. More From InvestorPlace * 9 High-Growth Stocks to Buy Now for Monster Returns * 7 Cheap Stocks That Make the Grade * 7 Healthy Dividend Stocks to Buy for Extra Stability Compare Brokers The post Rent-A-Center Earnings: RCII Stock Soars as Q4 EPS 15c Above Guidance appeared first on InvestorPlace.
Check out the companies making headlines after the bell:Etsy ETSY shares surged as much as 12 percent after hours Monday based on strong fourth-quarter earnings. Beating on the top and bottom lines, the e-commerce company posted earnings per share of 32 cents on revenues of $200 million.
Rent-A-Center posts positive consolidated same store sales of 9.1 percent and strong earnings and cash flow in the fourth quarter