Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Conn's Q4 Profit Surges, Lifts FY14 Earnings View; Shares Climb - Update

RELATED NEWS
Trade CONN now with 

Durable consumer products retailer Conn's, Inc. (CONN: Quote) Wednesday said its fourth-quarter profit more than doubled from last year as total revenues grew about 10 percent, boosted by its retail and credit operations. Adjusted earnings per share, excluding items, missed analysts' expectations, while revenues came above view.

The company also lifted its earnings per share guidance for the fiscal year ending January 31, 2014. The shares are up about 7 percent in the morning trade.

Theodore Wright, chairman and CEO of the company stated, "Continued revenue and profitability improvement in our retail and credit operations generated record fourth-quarter and full-year results."

In Retail segment, revenues increased 9.7 percent from last year. Retail gross margin improved 720 basis points to 36.9 percent, reflecting benefit of sale of higher price-point, higher-margin goods, and sourcing opportunities. Credit segment revenues climbed 14.5 percent from the prior-year quarter.

In the fourth quarter, the company's net income climbed to $17.67 million or $0.50 per share from $7.7 million or $0.24 per share in the previous year.

On an adjusted basis, earnings per share were $0.54, while the company posted $0.34 per share last year. On average, eight analysts polled by Thomson Reuters expected the company to earn $0.56 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter grew 10.4 percent to $250.34 million, which also came above analysts' estimate of $246.91 million.

Same-store sales were up 7 percent, compared to a growth of 12.1 percent last year.

For the fiscal year ending January 31, 2014, the company now expects adjusted earnings per share to be in the range of $2.40 to $2.50, up from the prior outlook of $2.05 to $2.15 per share. Eight analysts project annual earnings per share of $2.09. . Same stores sales are expected to be up 3 to 8 percent. Earlier, Conn's expected same stores sales to increase in the range of 0 to 5 percent.

The company noted that its newly opened five Conn's HomePlus stores are performing well and it plans to open 10 to 12 more over the balance of fiscal 2014.

CONN is currently trading at $38.42, up $2.34 or 6.49 percent, on a volume of 1.29 million shares, against a three-month average volume of 476 thousand shares.

Register
To receive FREE breaking news email alerts for Conns Inc. and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Computer and printer maker Hewlett-Packard Co. (HPQ) said Wednesday after the markets closed that its third quarter profit fell 29% from last year, hurt mainly by higher restructuring charges even as revenue grew 1%. The company's quarterly earnings per share, excluding items, came in line with analysts' expectations, but its quarterly revenue beat analysts' forecast. Stocks fluctuated over the course of the trading day on Wednesday before ending the session mostly higher. The Dow and the S&P 500 both finished the day in positive territory, although the tech-heavy Nasdaq posted a modest loss. President Barack Obama spoke harshly of the terrorist group allegedly responsible for the execution of American freelance journalist James Foley in a statement on Wednesday. Obama described the group known as the Islamic State of Iraq and the Levant, or ISIL, as a cancer that needs to be extracted.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.