Rent-A-Center’s stock surges after profit update that was well above expectations

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Shares of Rent-A-Center Inc. shot up 5.8% in premarket trading Monday, after the furniture, appliances and consumer electronics rental company provided a third-quarter financial update that was well above expectations. The company said it expects adjusted earnings per share of 95 cents to $1.05, above the FactSet consensus of 61 cents. Revenue for the quarter is expected to be $695 million to $715 million, above the FactSet consensus of $687 million. “Lease portfolio performance and customer payment activity have remained strong in both businesses even without additional government stimulus,” said Chief Executive Mitch Fadel. He said some uncertainty remains related to the COVID-19 pandemic, it currently sees same-store sales for its Rent-A-Center Business of up 10% to 12%. The stock has slipped 1.7% year to date through Friday, while the S&P 500 has gained 2.8%.
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