Conn’s Stock Jumps as Forecast Impresses
Conn's (CONN) was hitting its best levels in years Wednesday after the electronics and furniture seller's latest profit projection charged up buyers.
In recent trading, the retailer, which has most of its stores in Texas, was ahead by 7.2% to $38.67, putting it right at analysts' consensus target price of $38.62. Volume was about five times as heavy as a regular day. At its session peak, Conn's traded for $41.36, a gain of 14.6% from the last close.
The latest surge came after the company said it believes earnings for the current fiscal year will be $2.40 to $2.50 a share, well ahead of Wall Street estimates. The current consensus is $2.13. Conn's also is forecasting same-store sales growth of 3% to 8% and 10 to 12 new stores for the year.
Conn's, based in The Woodlands, Texas, hasn't closed above $40 since January 2006. From there, it slumped, and as recently as mid-2011 it was a $5-and-change stock. But helped in no small part by improved financial guidance along the way, the shares have rebounded sharply to their current range. Conn's started publicly trading in 2003.
Outside of Texas, Conn's also has locations in Louisiana, Oklahoma, New Mexico and Arizona.
