Analysts Estimate Aaron's Company, Inc. (AAN) to Report a Decline in Earnings: What to Look Out for

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Aaron's Company, Inc. (AAN) due to lower revenues, with a focus on how actual results will compare to estimates impacting stock price movements [1]. Financial Expectations - Aaron's is expected to report a quarterly loss of $0.08 per share, reflecting a year-over-year change of -112.1% [2]. - Revenues are projected to be $517.36 million, down 6.7% from the same quarter last year [2]. Estimate Revisions - The consensus EPS estimate has been revised 35.56% lower in the last 30 days, indicating a bearish sentiment among analysts regarding the company's earnings prospects [2]. - The Most Accurate Estimate for Aaron's is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.56% [5]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [4]. - Aaron's currently holds a Zacks Rank of 4, which complicates the prediction of an earnings beat [5][6]. Historical Performance - In the last reported quarter, Aaron's was expected to post earnings of $0.03 per share but instead reported a loss of $0.26, resulting in a surprise of -966.67% [7]. - Over the past four quarters, Aaron's has beaten consensus EPS estimates twice [7]. Conclusion - Despite the potential for an earnings beat, Aaron's does not appear to be a compelling candidate for such an outcome, and investors should consider other factors before making decisions [8].