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RCII 2Q Results: Postgame Scorecard

RCII's (RCII) profit climbed in the second quarter.

Earnings and Revenue

The company posted an EPS above analyst expectations, though revenues fell short of predictions. The company reported EPS of 74 cents a share versus the 71 cents a share estimate and revenues of $749.7 million versus the $753.9 million estimate. The estimates of 10 analysts ranged from profit of 68 cents to profit of 75 cents.

The company's net income for the quarter rose 10.8% to $44.2 million. Revenue climbed 7.4% from $698.3 million in the same period last year.

Company Fundamental Trends

Last quarter marked the third in a row of rising net income. The company's revenue has grown during at least each of the past four quarters on a year-over-year basis.

History Against Expectations

The company has now topped analyst estimates for at least the last four quarters. It beat by 3 cents in the first quarter, 3 cents in the fourth quarter of the last fiscal year and 2 cents in the third quarter of the last fiscal year.

Official Comment:

"We are generally pleased with our results in the quarter, as total revenues increased over 7% and earnings per share increased close to 9%," said Mark E. Speese, the Company's Chairman and Chief Executive Officer. "The RAC Acceptance segment performed exceptionally well nearly doubling revenue from a year ago to $77 million, with a gross profit margin of 58% and an operating profit of $7 million," Speese continued.

Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.