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UPBD Beats Earnings & Revenue Estimates in Q3, Raises 2024 Guidance
UPBDUpbound (UPBD) ZACKS·2024-11-01 17:51

Core Insights - Upbound Group, Inc. (UPBD) reported third-quarter 2024 results that exceeded Zacks Consensus Estimates for both revenue and earnings, leading to an 8% increase in share price [1][3][11] Financial Performance - Adjusted earnings were 95 cents per share, surpassing the consensus estimate of 89 cents, and increased from 79 cents in the same quarter last year [3] - Total revenues reached 1,068.9million,exceedingtheconsensusestimateof1,068.9 million, exceeding the consensus estimate of 1,047 million, marking a 9.2% year-over-year growth driven by rental and fee revenues, as well as merchandise sales [3][12] - Adjusted EBITDA was 116.9million,up10.3116.9 million, up 10.3% year over year, with an adjusted EBITDA margin of 10.9%, reflecting a 10 basis point increase from the previous year [4] Segment Performance - Rent-A-Center segment revenues increased 1.1% year over year to 458.7 million, with same-store sales rising 2.6% [5][6] - Acima segment revenues rose 19.1% year over year to 566.2million,drivenbygrowthinrentals,fees,andmerchandisesales[7][8]−TheMexicosegmentreportedrevenuesof566.2 million, driven by growth in rentals, fees, and merchandise sales [7][8] - The Mexico segment reported revenues of 19 million, up 7.3% on a constant-currency basis [9] 2024 Guidance - The company raised its 2024 revenue guidance to 4.20−4.20-4.30 billion from the previous 4.10−4.10-4.30 billion, with adjusted EBITDA expected between 470millionand470 million and 480 million [12][13] - Adjusted earnings for 2024 are projected to be 3.75−3.75-3.90 per share, an increase from the previous estimate of 3.65−3.65-4 [13]