The 10-second takeaway
For the quarter ended Oct. 31 (Q3), Conns beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Margins increased across the board.
Conns chalked up revenue of $206.4 million. The seven analysts polled by S&P Capital IQ predicted a top line of $194.3 million on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $179.5 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 $0.38. The five earnings estimates compiled by S&P Capital IQ forecast $0.29 per share. GAAP EPS were $0.35 for Q3 compared to -$0.40 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 45.9%, 1,190 basis points better than the prior-year quarter. Operating margin was 9.4%, 1,940 basis points better than the prior-year quarter. Net margin was 5.7%, 1,280 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $235.7 million. On the bottom line, the average EPS estimate is $0.54.
Next year's average estimate for revenue is $853.3 million. The average EPS estimate is $1.65.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 294 members out of 341 rating the stock outperform, and 47 members rating it underperform. Among 118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 98 give Conns 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 Conns is outperform, with an average price target of $30.57.
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