Why Conn's (CONN) Is Plummeting Today

NEW YORK (TheStreet) -- Conn's (CONN) was plummeting 32% to $37.85 on Thursday morning after the electronics and appliance retailer issued guidance that was less than analysts' expectations.

The company expects earnings per share of 75 to 80 cents, excluding items, for the fourth quarter. This range is well short of the Capital IQ consensus estimate of 93 cents. Conn's now expects EPS of $3.40 to $3.70 for the full fiscal year 2015. This is less than the consensus estimate of $3.96 and less than the company's own previous guidance of $3.80 to $4.

Same-store sales rose an estimated 33.4% from the fourth quarter one year ago, while preliminary retail segment net sales increased 44.8% year over year to an estimated $301.6 million.

Must ReadConn's, Inc. Announces Preliminary Fourth-Quarter Fiscal 2014 Results And Updates Fiscal 2015 Earnings Guidance

TheStreet Ratings team rates CONN'S INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate CONN'S INC (CONN) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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