), a Texas-based durable consumer goods retailer, is slated to
report its first-quarter fiscal 2015 results on Jun 2, 2014. In the
last quarter, it posted a negative surprise of 5.1%. Let's see how
things are shaping up for this announcement.
Factors Influencing this Quarter
Following an impressive fourth-quarter fiscal 2014, the company
remains optimistic about its results for fiscal 2015. The company
expects comparable-store sales to increase in the range of 5%-10%
while earnings to grow in the range of 32.3%- 44.0% and come in
between $3.40 and $3.70 per share in fiscal 2015.
However, we believe this optimism for the rest of the year could
be slightly impacted by the upcoming quarter's results. In the
first-quarter of fiscal 2015, the company's sales might be hurt by
a slowdown in the housing industry growth due to a severe winter in
January and February, rising mortgage rates as well as increased
housing prices. We expect the impact of the aforesaid factors on
sales to slightly weigh on first-quarter earnings.
Our proven model does not conclusively show that Conn's 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 to surpass earnings estimates. However,
this is not the case here, as you will see below:
Zero Zacks ESP:
ESP (Expected Surprise Prediction) for Conn's is 0.00%. This is
because the Most Accurate estimate stands at 73 cents per share,
which is in line with the Zacks Consensus Estimate.
Zacks Rank #3 (Hold):
Conn's Zacks Rank #3 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
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 to post an
Quanex Building Products Corporation
) with an Earnings ESP of +100.00% holds a Zacks Rank #3.
HD Supply Holdings, Inc.
) Earnings ESP stands at +11.77% and it carries a Zacks Rank
Amira Nature Foods Ltd.
) has an Earnings ESP of +3.23% and a Zacks Rank #3.
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