Conn's Inc Down 5.75% To $10.66 After Earnings Miss

Conn's Inc (CONN) reported less than expected earnings this morning for Q2 2023.

The consensus among analysts for Conn's Inc was for an earnings per share (EPS) of $0.09. The firm failed to meet those projections, reporting an EPS of $0.04, a negative surprise of $0.05 (-56%). Profits fell 97% year-over-year after reporting an EPS of $1.22 in its year-ago quarter. The negative growth rate signals that the Consumer Cyclical company isn't performing well amid current economic conditions.

Consensus estimates for Conn's Inc revenue averaged out to $370.2 million, with the business missing on those expectations with reported second-quarter revenue of $346.6 million. The $23.6 million (6%) negative revenue surprise led to negative 17% growth year-over-year as the firm reported revenue of $418.4 million in its year-ago quarter. The lower earnings growth compared to revenue points to Conn's Inc not being able to improve its profit margin.

The stock is down 5.75% to $10.66 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

The average recommendation from Wall Street analysts was a Buy which may get revised based on this new data.

InvestorsObserver gives the stock a Bullish Sentiment score at the moment based on recent trading.

Conn's Inc has performed a little below average during the past few months. Before the report, Conn's Inc received a Long-Term Technical Rank by InvestorsObserver of 40, putting it in the bottom half of stocks. The firm was recently trading at a 52-week low of $7.79 on July 5, 2022 and set a 52-week high on September 1, 2021 at $28.

Conn's Inc is a United-States-based specialty retailer primarily engaged in the sale of durable consumer goods and related services. The company operates through two segments. The retail segment sells a broad range of merchandise, including furniture and mattress products, home appliances, consumer electronics, and home office products. The credit segment provides credit solutions for credit constrained consumers based on customer risk and income level. A material portion of the company's customers finance purchases through its credit segment. The company focuses its business in the U.S., and generates most of its revenue from the retail segment.