Shares of Rent-A-Center Inc. rose more than 5% in the extended session Wednesday after the company reported second-quarter sales above Wall Street views and increased free cash flow guidance for the year. Rent-A-Center said it earned $38.5 million, or 70 cents a share, in the second quarter, compared with earnings of $95 million, or $1.70 a share, in the second quarter of 2019. Adjusted for one-time items, the company earned 80 cents a share, compared with 60 cents a share a year ago. Revenue rose 4% to $683.7 million. Analysts polled by FactSet expected the company to report GAAP and adjusted earnings of 60 cents a share on sales of $605 million. “We believe the changes to the way our customers live and work are here to stay. Our focus will remain on strategically managing our business to increase value for customers and retail partners,” Rent-A-Center said in a statement.
For 2020, Rent-A-Center guided for free cash flow between $135 million and $165 million, revenue between $2.755 billion and $2.875 billion, and adjusted EPS between $2.45 and $2.85. Shares had ended the regular trading day up 3.8%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
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