Conn's jumps as earnings top estimates


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Conn's (CONN) was at it again on Monday it being another big post-earnings move for the regional furniture and electronics retailer.

This time, the stock was up as much as 10% from its prior close following its latest quarterly numbers. In recent trading, the shares were ahead by 6.1% to $49.49. Lifting the stock were better-than-expected results on the main data for the past three months. Conn's, based in The Woodlands, Texas, had adjusted earnings of 80 cents a share in the first quarter, with revenue of $335.4 million, up 33.6% from last year. Same-store sales rose 15.6%.

Analysts were estimating a profit of 73 cents, revenue of $328.9 million and a same-store sales increase of 11.7%, according to FactSet. Conn's kept its most recent fiscal 2015 earnings forecast of $3.40 to $3.70 a share, excluding items.

Credit revenue climbed to $57.4 million. As of April 30, 8% of the customer portfolio was more than 60 days late. That had fallen to 7.8% as of May 31. At the end of January, it stood at 8.8%.

Conn's operates 80 retail locations, mostly in the Southwest. Along with its home state of Texas, it has stores in Arizona, Colorado, Louisiana, New Mexico, Oklahoma and Tennessee. It's become common for the shares to record sharp changes around earnings. Monday's gain was, in comparison, muted from the past few quarters. After the first quarter of 2013's earnings, the stock rose 11.3%. The next quarter, it fell 11.6%, and in the third quarter, it jumped 19.4%. This past February, shares plunged 42.8% in a single day following an earnings warning, but when the results were released a month later, the stock climbed 13%.

The stock is still well below the all-time high it reached in December at $80.34. At current levels, it's down almost 38% from there. Wall Street's consensus price target is $52.05.

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