), the electronics retailer, is slated to report fourth-quarter
fiscal 2014 results on March 27, 2014. In the last quarter, it
posted a positive surprise of 12.7%. Let us see how things are
shaping up for this announcement.
Factors this Past Quarter
Conns posted better-than-expected third-quarter fiscal 2014
results. The solid top and bottom-line performances were
primarily driven by strong consumer demand for furniture,
mattresses and computers. Last month, the company came up with
its preliminary results for the fourth quarter, which was not
that good. Subsequent to this, Conns trimmed its earnings
forecast for fiscal 2014 as well as fiscal 2015 owing to the
sluggish electronics sales and higher provision for bad debt
(triggered by higher charge-offs, accounts receivable and
delinquency rates). Moreover, with the announcement of
preliminary results, management provided earnings guidance range
of 75-80 cents per share for the fourth quarter.
Our proven model does not conclusively show that Conns is
likely to beat earnings estimates this quarter. This is because a
stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. This is not the
case here, as you will see below.
ESP for Conns is 0.00%. This is because the Most Accurate
Estimate of 78 cents coincides with the Zacks Consensus
Zacks Rank #4 (Sell):
Conns' Zacks Rank #4 when combined with a zero ESP makes surprise
prediction difficult. We caution against stocks with a Zacks
Ranks #4 and 5 (Sell-rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions momentum.
Stocks That Warrant a Look
Here are some other companies you may want to consider as our
model shows they have the right combination of elements:
G-III Apparel Group Ltd.
) has an Earnings ESP of +4.26% and a Zacks Rank #2 (Buy).
) has an Earnings ESP of +1.89% and a Zacks Rank #2.
) has an Earnings ESP of +11.11% and a Zacks Rank #3 (Hold).
CONNS INC (CONN): Free Stock Analysis Report
G-III APPAREL (GIII): Free Stock Analysis
CARMAX GP (CC) (KMX): Free Stock Analysis
ZEP INC (ZEP): Free Stock Analysis Report
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