What to Expect When Conn’s Reports Before Tuesday’s Opening Bell

By Chris Lange Updated Jan 30, 12:24PM EST · Published Dec 9, 12:40PM EST

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What to Expect When Conn’s Reports Before Tuesday’s Opening Bell — © kupicoo / Getty Images

Conn’s Inc. (NASDAQ: CONN) is scheduled to release its fiscal third-quarter results before the opening bell on Tuesday. The consensus estimates are calling for $0.54 in earnings per share (EPS) and $394.29 million in revenue. The same period of last year reportedly had $0.59 in EPS and $373.8 million in revenue.

In the fiscal second quarter, the company reported that total net sales increased 3.3% year over year to $306.06 million, while finance charges and other revenues increased 7.6% to $95.0 million.

Also at that time, Conn’s issued guidance for the fiscal third quarter saying that it expects to see total retail sales growth in the range of 4% to 8% with a retail gross margin between 40.0% and 40.5%.

The increase in retail revenue was primarily driven by new store growth, partially offset by a decrease in same-store sales of 2.3%. The decrease in same-store sales was driven by a decrease of 9.3% in markets affected by Hurricane Harvey, partially offset by an increase of 0.4% in markets not affected by the hurricane. Note that same-store sales include e-commerce sales.

During the second half of this fiscal year, management expects to lap the benefits Hurricane Harvey rebuilding efforts had on same-store sales, which has affected the year-over-year sales comparison over the past four quarters.

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Management also said that e-commerce sales are quickly ramping and the retailer is well-positioned to serve customers online.

Excluding Monday’s move, Conn’s had underperformed the broad markets, with its stock up about 3% year to date. In the past 52 weeks, the stock was down closer to 22%.

Shares of Conn’s were last seen up about 3% at $20.03, in a 52-week range of $15.40 to $27.57. The consensus price target is $33.83.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.