Conns Beats on Both Top and Bottom Lines

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Conns (NAS: CONN) reported earnings on June 6. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 30 (Q1), Conns beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly. GAAP earnings per share expanded significantly.


Margins grew across the board.

Revenue details
Conns booked revenue of $251.1 million. The eight analysts polled by S&P Capital IQ expected revenue of $242.0 million on the same basis. GAAP reported sales were 25% higher than the prior-year quarter's $200.9 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.61. The nine earnings estimates compiled by S&P Capital IQ anticipated $0.56 per share. GAAP EPS of $0.61 for Q1 were 74% higher than the prior-year quarter's $0.35 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 50.3%, 690 basis points better than the prior-year quarter. Operating margin was 15.5%, 640 basis points better than the prior-year quarter. Net margin was 8.8%, 300 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $260.5 million. On the bottom line, the average EPS estimate is $0.59.

Next year's average estimate for revenue is $1.11 billion. The average EPS estimate is $2.63.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 297 members out of 356 rating the stock outperform, and 59 members rating it underperform. Among 123 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 103 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 buy, with an average price target of $49.33.

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The article Conns Beats on Both Top and Bottom Lines originally appeared on Fool.com.

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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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