The Aaron's Company, Inc. AAN reported solid fourth-quarter 2021 results, wherein the top and bottom lines beat the Zacks Consensus Estimate.A robust lease-to-own portfolio, a solid e-commerce business and a sturdy performance in GenNext stores aided the quarterly results. The company remains on track with its GenNext real estate strategy, which is performing well. Notably, Aaron’s opened 30 GenNext stores in the fourth quarter. The company expects to open 120 such stores by 2022.Management noted that it entered a deal to acquire appliance and electronics retailer, BrandsMart. With the buyout, Aaron’s will be able to offer high-quality furniture, appliances, electronics, and other home goods on affordable lease and retail purchase options to its customers. The move is also expected to strengthen AAN’s market position and help expand the customer base.However, shares of Aaron’s fell more than 5% on Feb 23, which might be attributable to the bleak 2022 view stemming from the ongoing supply-chain disruptions. We also note that shares of the Zacks Rank #4 (Sell) company have lost 19.3% in the past three months compared with the industry’s decline of 13%. Image Source: Zacks Investment Research Q4 HighlightsAaron's delivered adjusted earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate of 37 cents. However, the bottom line declined 24.1% year over year from 79 cents per share reported in the prior-year quarter. On a GAAP basis, the company recorded earnings of 50 cents per share, indicating a sharp rise from 8 cents reported in the year-ago quarter.Consolidated revenues rose 3.4% to $444.8 million and beat the Zacks Consensus Estimate of $426 million. The uptick is mainly due to improved quality and the size of its lease portfolio, which somewhat offset reduced customer payment activities, and the impacts of the net closure of 72 franchised stores in 15 months ended Dec 31, 2021.Same-store revenues rose 4.8% in the fourth quarter, driven by improved lease portfolio size, which somewhat offset reduced lease renewal rates. E-commerce lease revenues were up 13%, accounting for 14.6% of total revenues.Breaking up the components of consolidated revenues, we note that lease and retail revenues grew 4.6% in the reported quarter to $404.8 million. Non-retail sales, which mainly include merchandise sales to franchisees, rose 2.4% year over year to $33.7 million. Franchise royalties and fees in the quarter slumped 39.4% to $6.3 million from the year-ago quarter.Aaron’s franchisee revenues decreased 18.3% year over year to $80 million on reduced franchised locations. Meanwhile, same-store revenues for franchised stores grew 4.3% year over year. Revenues and customers of franchisees are not deemed as revenues and customers of the company.Aaron’s adjusted EBITDA declined 23% year over year to $41.3 million. Adjusted EBITDA margin contracted 320 basis points (bps) to 9.3% in the reported quarter due to reduced lease renewal rates, a rise in operating costs and potential growth in write-offs.Financial PositionThe company ended the quarter with cash and cash equivalents of $22.8 million, and shareholders’ equity of $718.2 million. In 2021, it generated cash from operations of $136 million. Capital expenditure is expected to be $100-$125 million for 2022.In the reported quarter, the company bought back 820,338 shares of Aaron's common stock worth $20.7 million. In 2021, it repurchased 3,571,812 shares for $103.1 million. Currently, the company has shares worth $46.9 million remaining to be bought back under its existing share repurchase program of $150 million.The board also approved a quarterly dividend of 10 cents per share, which was paid out on Jan 4. On Feb 21, 2022, AAN approved a dividend hike of 12.5%. It will now pay a dividend of 11.25 cents on Apr 5 of shareholders’ records as of Mar 17.The Aaron's Company, Inc. Price, Consensus and EPS Surprise The Aaron's Company, Inc. price-consensus-eps-surprise-chart | The Aaron's Company, Inc. QuoteOutlookDespite the solid results, management provided a drab 2022 view. For 2022, the company anticipates revenues of $1.775-$1.825 billion, which compares unfavorably with $1,845.5 million reported in 2021. Same-store revenues are forecast to decline 3-1%. Adjusted EBITDA is likely to be $180-$190 million. It also expects a free cash flow of $45-$50 million.Stocks to ConsiderSome better-ranked stocks from the Consumer Discretionary sector are Delta Apparel DLA, Oxford Industries OXM and World Wrestling Entertainment WWE.Delta Apparel currently flaunts a Zacks Rank #1 (Strong Buy). The company has a trailing four-quarter earnings surprise of 95.5% on average. The DLA stock has gained 9.4% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Delta Apparel's current financial year’s sales and earnings per share suggests growth of 11.9% and 10.1%, respectively, from the year-ago period's reported numbers.World Wrestling presently sports a Zacks Rank #1. The company has a trailing four-quarter earnings surprise of 75.5%, on average. Shares of WWE have rallied 21.6% in a year.The Zacks Consensus Estimate for World Wrestling’s current financial-year sales and earnings suggests growth of 16.5% and 11.3% from the year-ago period’s reported numbers, respectively.Oxford Industries currently carries a Zacks Rank #2 (Buy). The company has a trailing four-quarter earnings surprise of 96.7%, on average. Shares of OXM have gained 15.1% in the past year.The Zacks Consensus Estimate for Oxford Industries’ current financial year’s sales and earnings suggests growth of 51.9% and 523.8%, respectively, from the year-ago period's reported numbers. Zacks Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time. This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.Free: See Our Top Stock and 4 Runners Up >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Aaron's Company, Inc. (AAN): Free Stock Analysis Report World Wrestling Entertainment, Inc. (WWE): Free Stock Analysis Report Oxford Industries, Inc. (OXM): Free Stock Analysis Report Delta Apparel, Inc. (DLA): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research