Upbound Group reports strong growth in Q2 2024, raising revenue guidance

From Investing.com: 2024-08-04 14:47:26

In Q2 2024, Upbound Group reported strong growth with revenues nearing $1.1 billion, driven by a 2% increase at Rent-A-Center and a 19% surge at Acima. The company raised its full-year guidance, highlighting strategic investments in technology and digital platforms to sustain profitable growth. Upbound Group remains committed to adapting to economic shifts.

Key Highlights:
– Q2 revenues reached $1.1 billion, with adjusted EBITDA around $125 million.
– Rent-A-Center’s sales grew by 2%, while Acima saw a 19% revenue increase.
– Acima’s adjusted EBITDA margin improved to 14.7%, meeting expectations.
-Full-year revenue guidance raised to $4.1 billion-$4.3 billion, with adjusted EBITDA between $465 million-$485 million and non-GAAP EPS ranging from $3.65-$4.

Bullish Highlights:
– Acima’s revenue and adjusted EBITDA margin showed significant improvement.
– Rent-A-Center experienced positive same-store sales growth.
– Company’s web channel volume contributed to 26% of total revenue.

Bearish Highlights:
– Gross margin decreased by 230 basis points year-over-year.
– Consolidated adjusted EBITDA saw a 4.6% decrease compared to the previous year.
– Lease charge-off rate increased by 30 basis points to 7.2%.

Despite facing challenges like margin pressures and increased expenses, Upbound Group remains optimistic, focusing on growth, dividends, and share repurchases. The company’s recent earnings call highlighted a period of robust growth and strategic advancements, reflecting confidence in its ability to excel in various economic conditions. With a strong performance trajectory and positive outlook, Upbound Group is poised for continued success in the market.



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