2 Stocks Red on Thursday

Earnings and ratings news move stocks lower

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Apr 05, 2018
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Shares of Conn's Inc. (CONN, Financial) lost more than 13% on the heels of the company reporting its financial results for the fourth quarter. The company posted earnings per share of 56 cents on revenue of $420.39 million. The company’s revenue was lower than the figure reported a year earlier by 2.9%. The company fell short revenue estimations by $8.3 million but beat earnings estimates by 2 cents.

Total retail revenues were $334.5 million for the fourth quarter of fiscal year 2018 lower than the $356.2 million for the fourth quarter of fiscal year 2017, a decrease of $21.7 million. This 6.1% decrease was driven by a decrease in same store sales of 8.0%.

Norm Miller, Conn’s chairman and CEO, said: “Conn’s fiscal year 2018 financial results demonstrate the successful execution of the Company’s turnaround strategies and, as expected, a return to full-year profitability. Credit segment performance improved throughout the fiscal year as a result of higher finance charges, stronger portfolio fundamentals, controlled expenses, and lower borrowing costs. Conn’s retail segment ended the year with record retail gross margins. I am encouraged by the platform we have created and the positive momentum underway at Conn’s.”

Looking ahead, the company expects for the first quarter of fiscal year 2019 retail gross margin between 38.5% and 39.0% of total net retail sales.

Qualcomm Inc. (QCOM, Financial) fell despite UBS initiating a neutral rating on the stock and a $56 price target. This level is almost 2% higher than the current market price. Of all the ratings, the company has 7 Buy, 8 Outperform, 13 Hold, and 1 Underperform ratings, and the average price target is $69.

Disclosure: The author holds no position in any stocks mentioned.