NEW YORK (TheStreet) --Shares of Aaron's Inc. (AAN) are down by -1.96% to $28.96 at the start of trading on Friday after the company reported a decline in net earnings to $8.5 million, or 12 cents per diluted share for the 2014 second quarter, compared to $25.9 million, or 34 cents per diluted share for the year ago quarter.
Aaron's said its 2014 second quarter earnings fell from the previous year as the company paid $9.7 million in amortization expense and $5.5 million in estimated transactions costs relating to its Progressive acquisition.
However, the specialty retailer involved in lease ownership of consumer products posted a 22% growth in revenue to $672.5 million versus $550.5 million for the 2013 second quarter.
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Aaron's issued full year earnings per share guidance between $1.12 and $1.22 per share, while its annual revenue is expected to be in the range of $2.65 billion and $2.70 billion.
Analysts are expecting EPS of $1.76 per share on revenue of $2.71 billion for the year.
Separately, TheStreet Ratings team rates AARON'S INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate AARON'S INC (AAN) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."