Is this Stock Safe to Play in? Conn’s, Inc. (NASDAQ:CONN)

On Wednesday, Conn’s, Inc. (NASDAQ:CONN) negotiated 626,559 shares against it an average volume of 550,306 shares. The stock concluded the recent trade at $26.70 with upbeat/downbeat trend moved of +0.11%. The company has got a 52-week exceptional price of $37.70 and reached a 52-week lowest of the share price at $15.40.

Conn’s, Inc. (CONN) recently reported its financial results for the quarter ended July 31, 2019.

Second quarter of fiscal year 2020 highlights includes:

  • Total retail sales of $306.1M, a raise of 3.3% over the previous fiscal year period
  • Same store sales increase of 0.4% in non-Hurricane Harvey markets
  • Earnings of $0.62 per diluted share, a raise of 17.0% over the previous fiscal year period
  • Second quarter retail gross margin of 40.5%
  • Consolidated operating margin of 10.4%
  • Credit spread of 890 basis points, the best second quarter credit spread in six years
  • Credit section revenues of $94.8M, a raise of 7.5% over the previous fiscal year period
  • Net income of $20.0M, contrast to $17.0M during the previous fiscal year period
  • Adjusted EBITDA of $54.0M, or 13.5% of total revenues
  • Repurchase of 1.9M shares at an average share price of $18.30

Second Quarter Results

Net income for the three months ended July 31, 2019 was $20.0M, or $0.62 per diluted share, contrast to net income for the three months ended July 31, 2018 of $17.0M, or $0.53 per diluted share.  On a non-GAAP basis, adjusted net income for the three months ended July 31, 2019 was $20.0M, or $0.62 per diluted share.  This compares to adjusted net income for the three months ended July 31, 2018 of $18.3M, or $0.57 per diluted share, which excludes the loss on extinguishment of debt from the early retirement of our Series 2017-A Class B and C Notes and a contingency reserve related to a regulatory matter.

Credit Section Second Quarter Results

Credit revenues were $94.8M for the three months ended July 31, 2019 contrast to $88.2M for the three months ended July 31, 2018, a raise of $6.6M or 7.5%.  The increase in credit revenue primarily resulted from the origination of our higher-yielding direct loan product, which resulted in a raise in the portfolio yield rate to 21.9% from 21.3% for the comparative period in fiscal year 2019, and from a 3.0% increase in the average outstanding balance of the consumer accounts receivable portfolio. In addition, insurance income contributed to the increase in credit revenue over the previous year period primarily Because of a raise in insurance retrospective income for the three months ended July 31, 2019.  The total consumer accounts receivable portfolio balance was $1.56B at July 31, 2019 contrast to $1.51B at July 31, 2018, a raise of 3.3%.

Provision for bad debts reduced to $49.8M for the three months ended July 31, 2019 contrast to $50.5M for the three months ended July 31, 2018, a decrease of $0.7M. The decrease was driven by lower net charge-offs of $1.6M for the three months ended July 31, 2019 contrast to the three months ended July 31, 2018, partially offset by a larger increase in the allowance for bad debts for the three months ended July 31, 2019. The larger increase in the allowance for bad debts was primarily driven by the year-over-year increase in the carrying value of the consumer accounts receivable portfolio from July 31, 2018.

CONN price is trading upbeat from its 200 days moving average with 24.82% and up from 50 days moving average with 34.44%. A look on the firm performance, its monthly performance is 37.98% and a quarterly performance of 55.41%.

Leave a Reply

Your email address will not be published. Required fields are marked *