Conn's Jumps on Earnings Beat, Jefferies Upgrade
Shares of Conn's (CONN) - Get Report jumped on Thursday after the furniture retailer reported for the first quarter and analysts at Jefferies published a bullish note.
Jefferies analyst Kyle Joseph called Conn "attractively valued."
"The top-line acceleration combined with ongoing credit strength/a negative provision to drive big earnings-per-share upside," Joseph said.
The firm rates Conn's buy with a $23 price target. At last check shares of the Woodlands, Texas, company jumped 25% to $30.
The investment firm said it was also encouraged by same-store sales numbers and sales recovery patterns.
The company reported adjusted first-quarter earnings of $1.55 a share on revenue of $363 million. Analysts surveyed by FactSet were expecting earnings of 30 cents a share on revenue of $327 million.
“We generated the highest quarterly net earnings in our 131-year history as a result of strong operating performance from both our retail and credit segments," Chief Executive Norm Miller said in a statement.
"We significantly grew retail sales, while simultaneously managing credit risk."
Same-store sales increased nearly 20% in the quarter while total sales jumped 27%.
Strategic initiatives include increasing retail sales across financing options, adapting the company's operations to digital, and expanding its brick-and-mortar footprint, Miller said.
