NEW YORK (TheStreet) -- Shares of Conn's (CONN) were gaining 10.1% to $39.12 on heavy trading volume Tuesday after the retailer beat analysts' estimates for earnings in the first quarter of fiscal 2016.
Conn's reported earnings of 44 cents a share for the first quarter, beating analysts' estimates of 41 cents a share for the quarter. Revenue grew 8.8% year over year to $365.08 million for the quarter, below analysts' estimates of $368.53 million.
The retailer said that same-store sales fell 4.3% in the first quarter compared to the year-ago quarter. Conn's expects same-store sales to be flat or up low single digits for the fiscal year 2016.
"In the first quarter of fiscal 2016, the retail segment expanded with new store growth offset by declines in same store sales," Chairman and CEO Theodore M. Wright said in a statement. "Although greater than 60-day delinquency for the quarter is above prior year, delinquency rates have continued to improve sequentially as we have progressively tightened underwriting standards over the course of fiscal 2015 and our ability to resolve less than 60-day delinquency has remained stable."
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, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and generally higher debt management risk."
You can view the full analysis from the report here: CONN Ratings Report