Published on 4 May 2023 on Zacks via Yahoo Finance

Upbound (UPBD) Q1 Earnings Surpass Estimates, Sales Decline

Upbound Group, Inc. UPBD, earlier known as Rent-A-Center, posted first-quarter 2023 results, wherein the top and the bottom lines surpassed the Zacks Consensus Estimate, and the latter improved year over year. The company’s revenues, however, declined year over year.Shares of this Zacks Rank #3 (Hold) company have increased 26.5% in the past six months compared with the industry’s 1.3% fall.

Q1 in Detail

Upbound posted adjusted earnings of 83 cents a share, surpassing the Zacks Consensus Estimate of earnings of 65 cents per share. Also, the bottom line increased from 74 cents per share earned in the year-ago quarter.Total revenues of $1,016.1 million came above the Zacks Consensus Estimate of $1,001 million. The metric fell 12.4% year over year, mainly due to lower rental revenues and fees, and merchandise sales. Rentals and fees revenues tumbled 8.6%, mainly due to a lower lease portfolio value for the Acima segment. Merchandise sales plunged 30%, owing to fewer customers opting for early pay-outs.