Conn’s shares soar 10% premarket after earnings blow past estimates

Furniture retailer Conn’s Inc. shares
CONN,
-8.23%
soared 10% in premarket trade Thursday, after the company posted first-quarter earnings that crushed expectations. The Woodlands, Texas-based Conn’s said it had net income of $45.4 million, or $1.52 a share, in the quarter, after a loss of $56.2 million, or $1.95 a share, in the year-earlier period. Adjusted per-share earnings excluding a loss on extinguishment of debt came to $1.55 a share, well ahead of the 30 cents FactSet consensus. Revenue came to $363.7 million, up from $317.2 million a year ago, and ahead of the $327.0 million FactSet consensus. Same-store sales rose 19.4%, compared with a FactSet consensus of 5.5%. “Strong first quarter sales were driven by a 70.0% increase in retail sales financed through cash, credit card, and third-party offerings, as our in-house credit underwriting strategy remained conservative during the quarter,” Chief Executive Norm Miller said in a statement. The company is aiming to expand retail sales across is financing options in fiscal 2022 and will focus on digital transformation. Shares have gained 105% in the year to date, while the S&P 500
SPX,
-0.13%
has gained 12%.

View more information: https://www.marketwatch.com/story/conns-shares-soar-10-premarket-after-earnings-blow-past-estimates-2021-06-03

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