The 10-second takeaway
For the quarter ended Jan. 31 (Q4), Conn's beat expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved.
Margins grew across the board.
Conn's logged revenue of $226.7 million. The four analysts polled by S&P Capital IQ predicted a top line of $221.4 million on the same basis. GAAP reported sales were 8.2% higher than the prior-year quarter's $209.5 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.34. The four earnings estimates compiled by S&P Capital IQ averaged $0.29 per share on the same basis. GAAP EPS were $0.24 for Q4 versus -$0.11 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.9%, 830 basis points better than the prior-year quarter. Operating margin was 7.7%, 460 basis points better than the prior-year quarter. Net margin was 3.4%, 490 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $196.3 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $832.7 million. The average EPS estimate is $1.29.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 298 members out of 341 rating the stock outperform, and 43 members rating it underperform. Among 113 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 93 give Conn's a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Conn's is outperform, with an average price target of $14.33.
If you're invested in retailers like Conn's, you should check out The Motley Fool's top stock for 2012. Its founder wrote the book on big-box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.
- Add Conn's to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.