LONDON, UK / ACCESSWIRE / April 27, 2018 / Active-Investors.com has just released a free earnings report on Conn's, Inc. (NASDAQ: CONN). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=CONN. On April 05, 2018, Conn's reported financial results for the fourth quarter and full year ended January 31, 2018. The Company surpassed analysts' expectations for earnings but missed revenue forecasts for Q4 FY18. Besides, the Company returned to full-year profitability in FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Conn's most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

Conn's total revenues reached $420.39 million for Q4 FY18, reflecting a decrease of 2.87% from $432.81 million in Q4 FY17 led by the Company's compelling retail experience and differentiated credit offering. The reported revenue number fell behind analysts' consensus estimates of $428.70 million.

During Q4 FY18, Conn's total costs and expenses were $375.55 million, 7.07% lower than $404.11 million in Q4 FY17. The Company's operating income advanced 56.24% to $44.84 million in Q4 FY18 from $28.70 million in Q4 FY17.

Conn's reported a net income of $3.20 million in Q4 FY18, after a net loss of $0.07 million in Q4 FY17. The Company had diluted earnings per share of $0.10 in Q4 FY18. Conn's reported Q4 FY18 results included the impact of the Tax Cut and Jobs Act, costs associated with facility relocation, and contingency reserves related to legal matters. On the other hand, Q4 FY17 results included credits from legal and professional fees associated with securities-related litigation, an adjustment to indirect tax audit reserve, and executive management transition costs. The Company's adjusted diluted earnings per share (DEPS), after excluding these non-recurring items, was $0.56 in Q4 FY18, an increase of 1020% from $0.05 in Q4 FY17. Conn's adjusted DEPS was higher than analysts' consensus estimates of $0.49 per share.

For the year ending January 31, 2017, Conn's total revenues were $1.52 billion, a decrease of 5.06% from $1.60 billion in FY17 as the increase in credit segment revenues were more than offset by decrease in retail revenues. The Company's operating profit advanced 79.52% to $115.07 million on a y-o-y basis in the reported year. Conn's had a net income of $6.46 million, or $0.20 per diluted share, in FY18 compared to $25.56 million, or $0.83 per diluted share, in FY17. The Company's adjusted DEPS for full year 2018, excluding special items was $0.95 compared to $0.22 in FY17.

Conn's Segment Details

During Q4 2017, the retail segment's net revenues were $334.54 million, a decrease of 6.08% on a y-o-y basis, which was mainly driven by 8% decline in same store sales. In the quarter under review, retail product sales declined 5.84% and repair service agreement commissions fell 10.03% while service revenues increased 13.89% from previous year's same quarter. This segment's operating profit for the quarter ending January 31, 2018, was $48.58 million, 13.39% lower than $56.10 million for the same period last year.

The Credit segment generated net revenues (i.e. finance charges and other revenues) of $85.85 million in Q4 FY18, a y-o-y increment of 12.07%. This was led by increased originations of its higher-yielding direct loan product. The credit segment had an operating loss of $3.74 million in Q4 FY18, after a net loss of $27.40 million in Q4 FY17.

Cash Matters

Conn's had cash and cash equivalents of $9.29 million as on January 31, 2018, compared to $23.57 million as on January 31, 2017. The Company's long-term debt and capital lease obligations were $1.09 billion as on January 31, 2018, 4.74% lower than $1.14 billion as on January 31, 2017.

Outlook

For the first quarter of fiscal 2019, Conn's expects change in same store sales down 3% to 5%. The Company expects retail gross margin to be between 38.5% and 39.0% of total net retail sales, and selling, general, and administrative (SG&A) expenses to be between 31.5% and 33.0% of total revenues in Q1 FY19. Conn's expects its provision for bad debts to be in the range of $43.0 million to $47.0 million and finance charges and other revenues to be in the range of $81.0 million to $85.0 million in Q1 FY19.

Stock Performance Snapshot

April 26, 2018 - At Thursday's closing bell, Conn's' stock declined 3.29%, ending the trading session at $25.00.

Volume traded for the day: 557.62 thousand shares, which was above the 3-month average volume of 531.75 thousand shares.

Stock performance in the past twelve-month period ? up 42.86%

After yesterday's close, Conn's' market cap was at $838.25 million.

Price to Earnings (P/E) ratio was at 41.67.

The stock is part of the Services sector, categorized under the Electronics Stores industry. This sector was up 1.0% at the end of the session.

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