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.
Based 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.
The 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.
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