Rent-A-Center Shares Just Exploded After This News

After announcing better than expected profit forecast and a new growth plan, shares of Rent-A-Center soared higher on investor enthusiasm.

The company’s release stated that Rent-A-Center aims to drive growth, improve profitability and deliver enhanced stockholder value into 2018 through a plan focusing on better pricing and an improved digital presence.

Following the release, shares climbed higher more than 5$ to over $10 a share.

For 2018, the company expects its annual earnings to fall between $1.20 to $1.40 per share. This came in a lot higher than analysts’ forecast of 99 cents, according to FactSet.

Rent-A-Center also expects free cash flow to hit $70 million to $90 million in 2018. 2019 free cash flow could reach anywhere from $110 million to $130 million.

Rent-A-Center Chief Executive Mark Speese said in a statement, “We recognize that significant improvement is needed. We are renewing our focus on what made Rent-A-Center an industry leader — starting with enhancing the value proposition of our offerings to increase customer satisfaction and enable higher rates of ownership.”

Speese had been Rent-A-Center’s interim chief executive and according to a filing with the Securities and Exchange Commission, would be taking on the position full time.

Rent-A-Center shares are still down over 30% in the past year despite the gains on Monday.

Disclaimer: We have no position in Rent-A-Center Inc. (NASDAQ: RCII) and have not been compensated for this article.

Sofia Vida

Sofia has been writing for major news outlets for over 15 years. In her spare time she enjoys hiking, walking her dogs, and going to concerts.

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