NEW YORK (TheStreet) -- Shares of Aaron's(AAN) - Get Report were falling 21.6% to $26.30 on Friday after the rental and leasing services company missed analysts' estimates for the third quarter.

Aaron's reported earnings of 39 cents a share for the third quarter, below analysts' estimates of 48 cents a share for the quarter. Revenue grew 9.9% from the year-ago quarter to $767.7 million, falling short of analysts' estimates of $782.18 million.

"While we delivered positive revenue and EBITDA growth, the third quarter was challenging in several respects," CEO John Robinson said in a statement. "Solid revenue growth at Progressive and continued expense control at our core stores was partially offset by lower than expected EBITDA at Progressive and negative same store revenues in the core segment."

The company said it had 1.521 million customer in the third quarter, a 6.3% increase from the year-ago quarter. Despite having more customers, the company said its Sales & Lease Ownership revenue fell 3.1% to $486 million in the quarter, and HomeSmart revenue fell 3.2% to $15.1 million.

Aaron's also lowered its full year 2015 earnings forecast to a range of $2.02 to $2.22 a share from a range of $2.16 to $2.36 a share. Analysts expect the company to report earnings of $2.32 a share for the year.

About 3.1 million shares of Aaron's AAN were traded by 10:20 a.m. Friday, well above the company's average trading volume of about 644,000 shares a day.

TheStreet Ratings team rates AARON'S INC as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

We rate AARON'S INC (AAN) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, reasonable valuation levels and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

You can view the full analysis from the report here: AAN

AAN data by YCharts

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