Conns Earnings: Here’s Why Investors are Happy Now

Conns Inc. (NASDAQ:CONN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 9.41%.

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Conns Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 74.29% to $0.61 in the quarter versus EPS of $0.35 in the year-earlier quarter.

Revenue: Rose 25.02% to $251.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Conns Inc. reported adjusted EPS income of $0.61 per share. By that measure, the company beat the mean analyst estimate of $0.55. It beat the average revenue estimate of $246.9 million.

Quoting Management: “We are pleased to again report record net income. Over the past six quarters, our operations have delivered year-over-year expansion in both same store sales and retail margins. With the addition of new stores and update of existing stores, furniture and mattress sales growth is accelerating. Furniture and mattress sales were up over 70% from last year and accounted for 26% of our total product sales in the current period,” stated Theodore M. Wright, the Company’s Chairman and CEO. “May 2013 same store sales rose 18% with same store sales of consumer electronics up 4%.”

Key Stats (on next page)…

Revenue increased 0.3% from $250.34 million in the previous quarter. EPS increased 12.96% from $0.54 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.49 to a profit $0.58. For the current year, the average estimate has moved up from a profit of $2.09 to a profit of $2.51 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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