Conn’s Inc. CONN is slated to report its fourth-quarter fiscal 2016 results on Mar 29. In the last quarter, the company had delivered a negative surprise of nearly 91.3%. Let’s see how things are shaping up for this announcement.
Factors Influencing This Quarter
Conn’s recently posted its sales and delinquency data for February, wherein its 60-plus day delinquency rate as of Feb 29, 2016, widened 10 basis points year over year to 9.3%.
Though comparable store sales (comps) and total retail sales for February witnessed year-over-year improvement on account of factors like favorable Super Bowl and leap year timing, results continued to be affected by Conn’s recent decision to discontinue video game products, digital cameras and certain tablets. These factors have been weighing on the company’s monthly sales for a while now as is evident from the dismal comps trends witnessed in Dec 2015 and Jan 2016.
Hence, given the dismal comps trend over the past few months and the high delinquencies, we remain cautious about the company’s performance in the upcoming quarter.
Earnings Whispers
Our proven model does not conclusively show that Conn’s is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. This is not the case here, as you will see below:
Zacks ESP: Conn’s Earnings ESP is currently pegged at 0.00%. This is because the Most Accurate estimate and the Zacks Consensus Estimate both stand at 27 cents.
Zacks Rank: Conn’s carries a Zacks Rank #4 (Sell). As it is, we caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement.
Stocks That Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:
Constellation Brands Inc. STZ has an Earnings ESP of +0.89% and a Zacks Rank #2 (Buy).
Walgreens Boots Alliance Inc. WBA has an Earnings ESP of +2.36% and a Zacks Rank #3 (Hold).
Ollie's Bargain Outlet Holdings Inc. OLLI has an Earnings ESP of +3.70% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment