Conns Earnings: Here’s Why the Stock is Falling Now

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. Shares are down 11.87%.

Conns Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 44.44% to $0.52 in the quarter versus EPS of $0.36 in the year-earlier quarter.

Revenue: Rose 30.5% to $270.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Conns Inc. reported adjusted EPS income of $0.52 per share. By that measure, the company missed the mean analyst estimate of $0.60. It beat the average revenue estimate of $259.74 million.

Quoting Management: Theodore M. Wright, the Company’s Chairman and CEO, commented, “August net sales increased 51% over the prior-year period. Same store sales in August rose 31%. Phoenix market store openings have been successful with three stores now open. We plan to open four more Phoenix area locations over the next several quarters.”

Key Stats (on next page)…

Revenue increased 7.82% from $251.06 million in the previous quarter. EPS decreased 14.75% from $0.61 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 $0.60 to a profit $0.62. For the current year, the average estimate has moved up from a profit of $2.59 to a profit of $2.66 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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