I believe it is an error to attribute Aaron’s stock decline on Tuesday to the company’s projected earnings for 2009. The press release announcing the third quarter results was not made available to the public until after the markets closed on Tuesday afternoon. As you noted the stock started its decline from the opening bell.
Your statement leads the reader to believe the company announced bad or unexpected news. In fact, the 2009 EPS average for the analyst’s who follow the stock is $1.83, which is within the range published in the earnings release.
A more likely cause for the drop is Rent-A-Center’s lowered guidance for the fourth quarter. News which was published after the markets closed on Monday and their third quarter conference call held on Tuesday.
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