NEW YORK (TheStreet) -- Conn's (CONN) - Get Conn's, Inc. Report stock is plunging by 23.40% to $8.97 on heavy trading volume Thursday morning, after the company reported a surprise loss for the 2017 first quarter and cut its guidance for fiscal 2017.
Before the market open, the furniture and home-appliance retailer reported an adjusted loss of 31 cents per share vs. analysts' estimates for adjusted earnings of 6 cents per share.
Revenue increased by 6.6% year-over-year to $389.1 million, but fell short of analysts' estimates for $393 million.
For fiscal 2017, Conn's now expects revenue growth in the low-to-mid single digits, down from its previous forecast for mid-to-high-single digits.
The hardgoods retailer also provides consumer credit. Delinquencies have been increasing for several years, which has weighed on finances, the Wall Street Journal reports.
Conn's disappointing results reflect its attempts to transform its credit business, with changes in the underlying behavior of the customer base exposing "the need for increased investment in credit risk management," CEO Norm Miller said in a statement.
About 2.63 million shares of Conn's have been traded so far today, well above its average trading volume of roughly 469,920 shares per day.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C-.
Conn's strengths such as its revenue growth, reasonable valuation levels and expanding profit margins are countered by weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.
You can view the full analysis from the report here: CONN
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.