Conns Beats Analyst Estimates on EPS

Seth Jayson, The Motley Fool
Updated

Conns (NAS: CONN) reported earnings on Sep. 5. Here are the numbers you need to know.

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.

Revenue details
 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 details
 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.

Margin details
 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.

Looking ahead
 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.

Investor sentiment
 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.

If you're invested in retailers like Conns, you should check out the concept that is 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.

The article Conns Beats Analyst Estimates on EPS 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. The Motley Fool has no positions in the stocks mentioned above. 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.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement