Reuters: Global Markets: Rent-A-Center results beat estimates

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Rent-A-Center results beat estimates Apr 23rd 2012, 21:30 Mon Apr 23, 2012 5:30pm EDT (Reuters) - Rent-A-Center Inc (RCII.O) reported a higher-than-expected quarterly profit and a rise in sales as some shoppers chose to buy the products they had rented, sending its shares up 4 percent in after-hours trading. Rent-A-Center -- which lets customers own furniture, electronics and other products they have rented after completing payments over a term -- said demand for its products was "steady" in the quarter. "Total revenue and same-store sales benefited in the quarter from more customers than expected exercising their early purchase option," Chief Executive Mark Speese said in a statement. Outright sales boost the company's quarterly results but it loses out on future recurring revenue as a result. So, despite the strong results, Rent-A-Center maintained its full-year sales and profit forecasts. The company posted a first-quarter net profit of $51.9 million, or 87 cents a share, compared with $44.2 million, or 69 cents a share, a year ago. Sales rose 13 percent to $835.3 million. Analysts on average expected earnings of 84 cents a share, before special items, on revenue of $807 million, according to Thomson Reuters I/B/E/S. Shares of the company rose to $37.95 after the bell. They closed at $36.66 on Monday on the Nasdaq. (Reporting by Mihir Dalal in Bangalore; Editing by Maju Samuel) Link this Share this Digg this Email Reprints

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