Specialty retailer Conn's Inc. (CONN) comes on our radar after reporting stellar third-quarter results and issuing upbeat guidance.
Company Profile
Conn's offers consumer electronics, including cameras; camcorders; video game hardware and software products; portable audio; 3D, LED, LCD, plasma, and DLP televisions; and home theater systems.
It also provides home appliances, such as refrigerators, freezers, washers, dryers, ranges, dishwashers, built-ins, cook tops, air conditioners, and vacuum cleaners; furniture and mattresses comprising upholstery, recliners, dining and bedroom mattresses, and bedding accessories; home office products, including computer peripherals, computer monitors, printers, computers, home office furniture, laptops, Internet devices, tablets, and computer accessories; and lawn and garden equipment.
Strong Q3 Results
Third-quarter net income was $11.78 million or $0.35 per share compared to a loss of $12.72 million or $0.40 per share prior year.
Adjusted profit per share was $0.38 for the quarter. On average, seven analysts polled by Thomson Reuters expected the company to report profit per share of $0.28 for the quarter. Analysts' estimates typically exclude special items.
Same store sales rose 12.6%. Total revenues increased to $206.40 million from $186.62 million last year. Analysts expected revenue of $199.23 million for the quarter.
Quarterly revenue growth was largely driven by a 31.7% increase in furniture and mattress sales and, to a lesser extent, higher customer demand for home office equipment and appliances.
Future In Focus
The company raised adjusted earnings guidance for the fiscal year ending January 31, 2013, to $1.55 - $1.60 per share. Previously, the company expected earnings to be in the range of $1.40 - $1.50 per share. Conn's expects same stores sales to increase in the range of 13% - 16%. Analysts expect the company to report fiscal 2013 earnings per share of $1.53.
The company also initiated earnings guidance of $2.05 - $2.15 for the fiscal year ending January 31, 2014. Conn's expects same stores sales to increase in the range of 0% - 5%. Analysts expect the company to report fiscal 2014 earnings per share of $1.91.
Quarterly Results
- Q2 net income was $11.61 million or $0.35 per share versus loss $3.1 million or $0.10 per share last year.
- Q2 adj. EPS was $0.36. Consensus - $0.35/Shr.
- Q2 total revenues rose to $207.44 million from $187.03 million in the prior year. Consensus - $205.95 million.
- Q1 profit was $11.56 million or $0.35 per share versus $4.4 million or $0.14 per share last year. Consensus - $0.33 per share.
- Q1 total revenues grew to $200.85 million from $191.98 million in the prior-year quarter. Consensus - $202.10 million.
- Q4 net income was $7.70 million or $0.24 per share versus loss $3.58 million or $0.12 per share last year.
- Q4 adj. EPS was $0.34 versus breakeven loss per share a year ago. Consensus - - $0.29.
- Q4 total revenues rose 3.7% to $226.67 million from $218.66 million last year. Consensus - $221.90 million.
Annual Financial Data
Total revenues for fiscal year ended January 31, 2012 amounted to $792.3 million, compared to $808.8 million in 2011 and $887.1 million in 2010.
Net loss was $3.72 million or $0.12 per share in fiscal 2012, compared to a loss of $1.07 million or $0.04 per share in 2011, and a profit of $4.30 million or $0.17 per share in 2010.
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