Conn’s Provides Upbeat Outlook on FY 2014, Shares Rally (CONN)
Shares of Conn’s Inc. (NASDAQ: CONN) rallied about 8% in trading on Wednesday after the durable goods specialty retailer said that its fiscal fourth-quarter profit climbed more than two times, thanks to around 10% growth in top line, bolstered both by its retail and credit operations.
Although non-GAAP or adjusted earnings fell short of Street’s estimation, revenue edged past analysts forecast.
The Company also raised its earnings guidance for the fiscal year 2014.
For the fiscal fourth quarter, the Company reported a profit of $17.67 million or 50 cents a share up from net income of $7.7 million or 24 cents a share, in the year earlier quarter.
On non-GAAP basis, earnings came at 54 cents a share compared to 34 cents a share. Revenue for the period climbed 10.4% to $250.34 million.
Analysts polled by Thomson Reuters were expecting earnings of 56 cents a share on revenue of $246.91 million.
While revenue from Conn’s retail division rose 9.7%, it jumped 14.5% in credit segment. Gross margin in the retail division improved by 720 basis points to 36.9%, thanks to low-cost sourcing, fatter margins on merchandises.
Comparable-store sales climbed by 7% compared to an increase of 12.1% i in the same quarter of last year.
Looking ahead the fiscal 2014, the Company expects non-GAAP earnings to be in the range of $2.40 to $2.50 a share up from original guidance of $2.05 to $2.15 a share. Analysts were expecting earnings of $2.09 a share. Comparable-store-sales are anticipated to jump by 3% to 8% up from initial forecast for 0 to 5% growth.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.
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