Conn's (CONN) Tops Q1 EPS by 17c, Sales Light

June 6, 2017 6:02 AM EDT
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Price: $20.89 +6.42%

Financial Fact:
Basic (in dollars per share): -0.12

Today's EPS Names:
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Conn's (NASDAQ: CONN) reported Q1 EPS of ($0.05), $0.17 better than the analyst estimate of ($0.22). Revenue for the quarter came in at $355.83 million versus the consensus estimate of $358.71 million.

“We are encouraged by our fiscal 2018 first quarter financial performance, operating results and strong retail profitability - which is all underscored by ongoing progress with our credit business,” commented Norm Miller, Conn\'s Chairman, Chief Executive Officer and President. “Conn’s credit segment performance is improving as a result of higher finance charges, strengthening portfolio trends, controlled expenses, and lower borrowing costs. Interest income and fee yield of 18.2% was the highest since the fiscal 2015 fourth quarter as a result of the strategies we have implemented to increase yield. Approximately 84% of our current originations have a weighted average interest rate of 28.6%, compared to almost 22% in September. As higher rate originations become a larger percentage of Conn’s credit portfolio, we now expect interest income and fee yield will ultimately increase to 23 - 25%.”

Outlook and Guidance

The following are the Company\'s expectations for the business for the second quarter of fiscal year 2018:

  • Change in same store sales down between 12.0% and 15.0%;
  • Retail gross margin between 37.75% and 38.25% of total retail net sales;
  • Selling, general and administrative expenses between 30.5% and 32.0% of total revenues;
  • Provision for bad debts between $52.0 million and $56.0 million;
  • Finance charges and other revenues between $78.0 million and $82.0 million; and
  • Interest expense between $20.5 million and $22.5 million.

For earnings history and earnings-related data on Conn's (CONN) click here.

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