Earnings Preview: Aaron's Company, Inc. (AAN) Q2 Earnings Expected to Decline

Company Overview - Aaron's Company, Inc. (AAN) is expected to report a quarterly earnings decline of 92.3% year-over-year, with earnings projected at $0.03 per share and revenues at$509.82 million, down 3.9% from the previous year [2][5]. Earnings Estimates and Revisions - The consensus EPS estimate has been revised 3.13% lower in the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [2][5]. - The Most Accurate Estimate for Aaron's is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -171.43%, suggesting a challenging outlook for the upcoming earnings report [5][6]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with a strong predictive power for positive readings [3][4]. - Aaron's current Zacks Rank is 3 (Hold), which, combined with a negative Earnings ESP, complicates the prediction of an earnings beat [5][6]. Historical Performance - In the last reported quarter, Aaron's was expected to post a loss of $0.08 per share but actually reported a loss of$0.15, resulting in a surprise of -87.50% [7]. - Over the past four quarters, Aaron's has only beaten consensus EPS estimates once, indicating a trend of underperformance [7]. Market Context - The broader industry context includes Cimpress (CMPR), which is expected to report earnings of $0.77 per share, reflecting a year-over-year decline of 28.7$832.9 million, up 5.6% [9]. - Cimpress has a Zacks Rank of 2 (Buy) but also has a negative Earnings ESP of -6.90%, making predictions about its earnings beat uncertain [9].