The 10-second takeaway
For the quarter ended July 31 (Q2), Conns met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share increased.
Margins grew across the board.
Conns chalked up revenue of $207.4 million. The one analyst polled by S&P Capital IQ expected to see a top line of $208.0 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $185.5 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 $0.36. The six earnings estimates compiled by S&P Capital IQ anticipated $0.35 per share. GAAP EPS were $0.35 for Q2 compared to -$0.09 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 45.8%, 730 basis points better than the prior-year quarter. Operating margin was 11.3%, 580 basis points better than the prior-year quarter. Net margin was 5.6%, 710 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $189.8 million. On the bottom line, the average EPS estimate is $0.22.
Next year's average estimate for revenue is $842.0 million. The average EPS estimate is $1.45.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 297 members out of 343 rating the stock outperform, and 46 members rating it underperform. Among 116 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 95 give Conns a green thumbs-up, and 21 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 $22.60.
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