Conns Earnings: Here’s Why Investors Like These Results

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

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Conns Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 58.82% to $0.54 in the quarter versus EPS of $0.34 in the year-earlier quarter.

Revenue: Rose 5.2% to $250.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Conns Inc. reported adjusted EPS income of $0.54 per share. By that measure, the company missed the mean analyst estimate of $0.56. It beat the average revenue estimate of $246.91 million.

Quoting Management: “Continued revenue and profitability improvement in our retail and credit operations generated record fourth-quarter and full-year results,” stated Theodore M. Wright, the Company’s Chairman and CEO. “Our five new Conn’s HomePlus stores are performing well and we plan to open 10 to 12 more over the balance of fiscal 2014. Average revenue for the new stores was 1.6 times the overall Company average for the three months ended March 31, 2013, with approximately 36% of those sales generated from furniture and mattresses. Same store sales for February and March rose 15% on a combined basis over last year despite a 3% decline in same store sales of consumer electronics.”

Key Stats (on next page)…

Revenue increased 21.27% from $206.4 million in the previous quarter. EPS increased 42.11% from $0.38 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.43 and has not changed. For the current year, the average estimate has moved up from a profit of $1.6 to a profit of $1.65 over the last ninety days.

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