Conn's: Yes Money, No Profit, Fair Value <$6.70
Bruce Weber • 11 Comments
Bruce Weber • 11 Comments
Yesterday, 11:33 AM
- SunTrust analyst David Magee thinks Conn's (NASDAQ:CONN) could see a sharp drop in credit losses in 2017 and 2018.
- Magee lifts profit estimates on Conn's due to the boost n credit confidence on credit sets a price target of $20 on the Buy-rated retailer.
- Shares of Conn's are up 5.94% on the day.
Tue, Dec. 6, 6:31 AM
- Conn's (NASDAQ:CONN) reports same-store sales fell 10.1% in Q3.
- Net sales by category: Furniture and mattress: $98.9M (-6.5%); Home appliance: $85.79M (-0.8%); Consumer electronics: $65.67M (-6.5%); Home office: $22.75M (-12.9%); Other: $4.96M (+8.2%); Repair service agreement commissions: $26.35M (+1.2%); Service revenues: $3.62M (+4.3%).
- Credit revenue dropped 5.2% to $68.4M.
- Furniture unit volume down 13.7% & mattress unit volume -7.3%.
- Home appliance unit volume rose 5.6%.
- Consumer electronic unit volume slipped 11.8%.
- Home office unit volume declined 12.2%.
- Retail gross margin grew 40 bps to 37.5%.
- Operating margin squeezed 10 bps to 11%.
- Retail store count +12 Y/Y to 113.
- Q4 Guidance: Same-store sales: down ~10%; Retail gross margin rate: 37% to 37.5%; SG&A expense rate: 27.75% to 28.75%; Interest expense: $25.5M to $26.5M.
Tue, Dec. 6, 6:01 AM
Mon, Dec. 5, 5:30 PM
Tue, Oct. 11, 10:01 AM
- Conn's (CONN -0.9%) and Aaron's (AAN -4.5%) are lower in what appears to be a reaction to a biting profit warning from Rent-A-Center this morning.
- Rent-A-Center's EPS guidance came in short due in part to POS system issues.
- Previously: Rent-A-Center releases some early Q3 results (Oct. 11)
- Previously: Profit stunner sends Rent-A-Center to 20-year low (Oct. 11)
Fri, Sep. 30, 5:36 PM
Fri, Sep. 30, 12:29 PM
- Shares of Sears Holdings (NASDAQ:SHLD) are up 9% to jump back over $12.
- Volume on today's strong move has already flown past the daily trading average for Sears.
- The push higher in Sears coincides (related?) with strength in companies in the business of renting, leasing, and offering up credit services. Some of those movers include Conn's (CONN +5.8%), General Finance (GFN +1.4%), Willis Lease (WLFC +3%), United Rentals (URI +2.8%), Rent-A-Center (RCII +2.5%), Essex Rental (ESSX +3.8%), Ryder (R +2.1%), and Air Lease (AL +2.2%).
Thu, Sep. 29, 9:51 AM
- Conn's (NASDAQ:CONN) entered into an agreement to securitize an aggregate of approx. $700M of retail installment contract receivables through offering of three classes of fixed rate notes closing on or about October 6, 2016.
- $391.84M Class A asset backed notes bearing coupon rate of 3.73% is expected to be rated BBBsf by Fitch.
- $111.96M Class B asset backed notes bearing coupon rate of 7.34% is expected to be rated BBsf by Fitch.
- $48.98M Class C asset backed fixed rate notes and residual equity will initially be retained by an affiliate of the Company.
- Net proceeds of class A and class B notes of approx. $488M, net of transaction costs and reserves.
- Press Release
Wed, Sep. 21, 12:48 PM
Wed, Sep. 21, 9:19 AM| Wed, Sep. 21, 9:19 AM | 5 Comments
Wed, Sep. 21, 9:17 AM
Tue, Sep. 20, 4:46 PM
- via Bespoke - see table
- Five of the stocks have > 50% of their shares sold short.
- SHLD leads the pack.
Fri, Sep. 9, 12:45 PM
Thu, Sep. 8, 8:04 AM
- Conn's (NASDAQ:CONN) reports same-store sales fell 5.1% in Q2.
- Net sales by category: Furniture and mattress: $105.56M (+6.8%); Home appliance: $101.36M (+4.2%); Consumer electronics: $65.74M (-5.7%); Home office: $21.7M (-5.4%); Other: $5.37M (+7.9%); Repair service agreement commissions: $28.31M (+2%); Service revenues: $3.97M (+14.9%).
- Credit revenue decreased 6.7% to $65.7M.
- Furniture unit volume rose 4.8% & mattress unit volume up 4.3%.
- Home appliance unit volume increased 5.2%.
- Consumer electronic unit volume dropped 10.1%.
- Home office unit volume squeezed 9.7%.
- Retail gross margin slipped 60 bps to 37.1%.
- Adjusted retail operating margin declined 260 bps to 11.6%.
- Retail store count +17 Y/Y to 112.
- Q3 Guidance: Same-store sales: down high single digits; Retail gross margin rate: 36.5% to 37.25%; SG&A expense rate: 29.25% to 29.9%; Interest expense: $24.5M to $26.5M.
Thu, Sep. 8, 6:01 AM
Wed, Sep. 7, 5:30 PM