Aaron’s (NYSE:PRG) Updates FY 2025 Earnings Guidance

Aaron’s (NYSE:PRG) updated its FY 2025 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of 3.350-3.450 for the period, compared to the consensus estimate of 3.330. The company issued revenue guidance of $2.4 billion-$2.4 billion, compared to the consensus revenue estimate of $2.5 billion. Aaron’s also updated its Q4 2025 guidance to 0.550-0.650 EPS.

Aaron’s Stock Performance

Shares of NYSE:PRG opened at $31.18 on Friday. The company has a market capitalization of $1.23 billion, a price-to-earnings ratio of 7.91 and a beta of 1.79. The company has a quick ratio of 2.82, a current ratio of 4.74 and a debt-to-equity ratio of 0.85. Aaron’s has a 52 week low of $23.50 and a 52 week high of $49.90. The firm has a 50 day moving average of $33.56 and a 200 day moving average of $30.50.

Aaron’s (NYSE:PRG) last issued its quarterly earnings data on Wednesday, October 22nd. The company reported $0.90 earnings per share for the quarter, beating analysts’ consensus estimates of $0.73 by $0.17. The company had revenue of $595.11 million for the quarter, compared to the consensus estimate of $586.11 million. Aaron’s had a return on equity of 22.36% and a net margin of 6.54%.The firm’s revenue for the quarter was down 1.8% compared to the same quarter last year. During the same quarter last year, the company earned $0.77 earnings per share. Aaron’s has set its FY 2025 guidance at 3.350-3.450 EPS. Q4 2025 guidance at 0.550-0.650 EPS. On average, sell-side analysts predict that Aaron’s will post 3.45 earnings per share for the current fiscal year.

Aaron’s Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Thursday, September 4th. Stockholders of record on Tuesday, August 19th were given a dividend of $0.13 per share. The ex-dividend date of this dividend was Tuesday, August 19th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 1.7%. Aaron’s’s dividend payout ratio is presently 10.28%.

Analysts Set New Price Targets

A number of equities research analysts have commented on PRG shares. Weiss Ratings reiterated a “hold (c)” rating on shares of Aaron’s in a research note on Wednesday, October 8th. Wall Street Zen downgraded Aaron’s from a “buy” rating to a “hold” rating in a research report on Saturday, October 11th. TD Cowen cut their price objective on Aaron’s from $38.00 to $37.00 and set a “buy” rating on the stock in a report on Thursday. Finally, BTIG Research raised their price objective on Aaron’s from $27.00 to $31.00 and gave the stock a “sell” rating in a research note on Thursday. Four analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and an average target price of $40.33.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. State of Wyoming grew its holdings in shares of Aaron’s by 26.7% during the second quarter. State of Wyoming now owns 10,235 shares of the company’s stock worth $300,000 after buying an additional 2,157 shares in the last quarter. Public Sector Pension Investment Board grew its position in shares of Aaron’s by 4.4% in the second quarter. Public Sector Pension Investment Board now owns 137,549 shares of the company’s stock valued at $4,037,000 after purchasing an additional 5,823 shares in the last quarter. Headlands Technologies LLC grew its position in shares of Aaron’s by 40.7% in the second quarter. Headlands Technologies LLC now owns 11,395 shares of the company’s stock valued at $334,000 after purchasing an additional 3,297 shares in the last quarter. WealthCollab LLC raised its stake in Aaron’s by 61.9% during the second quarter. WealthCollab LLC now owns 2,092 shares of the company’s stock worth $61,000 after purchasing an additional 800 shares during the period. Finally, Tidal Investments LLC purchased a new position in Aaron’s during the second quarter worth about $260,000. Hedge funds and other institutional investors own 97.92% of the company’s stock.

About Aaron’s

PROG Holdings, Inc (NYSE:PRG) is a financial technology holding company based in Salt Lake City, Utah with three business segments: Progressive Leasing, which offers lease-to-own transactions primarily to credit-challenged consumers through e-commerce and point-of-sale retail partners, via online, mobile, and in-store solutions; Vive Financial, which provides consumers who may not qualify for traditional prime lending with a variety of second-look, revolving credit products through private label and branded credit cards; and Four Technologies, which provides consumers of all credit backgrounds Buy Now, Pay Later (BNPL) options through four interest-free installments via its platform, Four.