Boston, MA 02/21/2014 (wallstreetpr) – Conn’s Inc. (NASDAQ:CONN) received the backlash of Wall Street on Thursday trading session after it announced it had changed its profits outlook for 2014 and 2015. The company stock slipped by a high of 42.85% awaiting to see what will happened on Friday trading session.
Conn’s Inc. (NASDAQ:CONN) cited higher than expected delinquency rates and lower expected sales as the reason behind the turnaround in profit projection for 2014 and 2015. The company now expects to report earnings per share of between $2.59 and $2.64 for fiscal 2014 compared to earlier projections of between $2.75 and $2.80. Conn’s also changed its fiscal 2015 earnings per share expectation of between $3.80 and $4 to lows of $3.40 and $3.70.
Conn’s Inc. (NASDAQ:CONN)’s chief executive officer Theodore M Wright admitted that the company’s credit segment performance has not caught up with the earlier expected sales growth, he admitted the company faced higher delinquencies and charge offs for the months of December and January. Dropping sales continue to mount more pressure on Conn’s collections operation with harsh weather conditions not doing the company any good
Conns preliminary results
The specialty retailer of home appliances such as furniture mattresses and consumer electronics announced that its same store sales for the fourth quarter rose by 33.4% when compared to the same quarter a year ago. Preliminary retail net sells also increased by 44.8% to post an estimated $301.6 million revenue.
Conn’s Inc. (NASDAQ:CONN)’s retail gross margin improved by 40% when compared to the same period a year ago with the company expected to report a higher than earlier estimated provision for bad debts. Based on the preliminary results, the company expects to report earnings per share of between $0.76 and $0.81 for the fourth quarter of F2014 which will include a net benefit of $0.01 per diluted share.
Conn’s Inc. (NASDAQ:CONN)’s slumped in the market on Thursday at the back of the changed guidance, by a high of 42.85% to close the day at $31.89 a share
