The 10-second takeaway
For the quarter ended April 30 (Q1), Conns met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share improved significantly.
Margins increased across the board.
Conns booked revenue of $200.9 million. The one analyst polled by S&P Capital IQ expected revenue of $201.8 million on the same basis. GAAP reported sales were 6.1% higher than the prior-year quarter's $189.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.35. The five earnings estimates compiled by S&P Capital IQ anticipated $0.33 per share. GAAP EPS of $0.35 for Q1 were 169% higher than the prior-year quarter's $0.13 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 45.2%, 810 basis points better than the prior-year quarter. Operating margin was 11.0%, 750 basis points better than the prior-year quarter. Net margin was 5.8%, 370 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $200.2 million. On the bottom line, the average EPS estimate is $0.34.
Next year's average estimate for revenue is $845.3 million. The average EPS estimate is $1.34.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 295 members out of 337 rating the stock outperform, and 42 members rating it underperform. Among 110 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 87 give Conns a green thumbs-up, and 23 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Conns is outperform, with an average price target of $22.00.
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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.