Conn's (CONN) Stock Is Down Today on Earnings Miss

NEW YORK (TheStreet) -- Shares of Conn's (CONN) were falling 3.3% to $27.72 on heavy trading volume Tuesday after the retailer missed analysts' estimates for earnings in the fourth quarter of fiscal 2015.

Conn's reported earnings of 46 cents a share, excluding a 4 cent charge, for the fourth quarter, missing the Capital IQ Consensus Estimate of 64 cents a share by 18 cents. Revenue grew 18.2% year-over-year to $426.7 million for the quarter, above analysts' estimates of $451.52 million.

The retailer said that same-store sales grew 1.3% in the fourth quarter of fiscal 2015. Gross margin fell 110 basis points to 39.5% in the quarter.

Conn's said it will stop offering video game products, digital cameras, and certain tablets in fiscal 2016. The retailer said that fiscal 2015 net sales and product margin for the products was about $50 million and $5 million, respectively.

The company expects the change in same-store sales for fiscal year 2016 to range from flat to up low single digits.

About 1.8 million shares of Conn's were traded by 11:27 a.m. Tuesday, above the company's average trading volume of about 1.1 million shares a day.

Separately, TheStreet Ratings team rates CONN'S INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate CONN'S INC (CONN) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow."

You can view the full analysis from the report here: CONN Ratings Report

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