NEW YORK (TheStreet) -- Shares of Aaron's (AAN) - Get Report are spiking 10.21% to $24.19 on heavy trading volume late Friday afternoon following the Atlanta-based company's better-than-anticipated earnings for the 2016 second quarter.
Before today's market open, the lease-to-own retailer posted adjusted earnings of 59 cents per share, above analysts' expectations of 57 cents per share.
Revenue for the period was $789.4 million, lower than analysts' projections of $809.2 million.
"A soft demand environment for the core business continued to impact lease activity, which was below our expectations," CEO John Robinson said in a statement.
"In light of the core results, we're taking steps to further address our expense structure, including a thorough review of our store base. We are encouraged by stabilizing trends in comparable store revenues and merchandise write offs over the last few quarters," he added.
For 2016, Aaron's now sees earnings per share between $2.13 and $2.33 on revenue of $3.15 billion to $3.35 billion. Previously, the company guided earnings per share in the range of $2.20 and $2.40 on revenue of $3.25 billion to $3.45 billion.
Analysts are modeling earnings of $2.24 per share on revenue of $3.33 billion.
Aaron's focuses on leases and retail sales of furniture, electronics, appliances and computers.
About 1.58 million of the company's shares were traded so far today vs. its average volume of 1.04 million shares per day.
Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.
The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels.
But the team also finds weaknesses including weak operating cash flow and a generally disappointing performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: AAN