Conn's CEO Cautions On Challenging Macro-Environment Throughout FY25; Stock Falls
Portfolio Pulse from Nabaparna Bhattacharya
Conn's, Inc. (NASDAQ:CONN) reported Q4 adjusted EPS of $(1.25), beating estimates but with revenues of $366.1 million missing expectations. The Badcock transaction contributed significantly to revenues. Despite a challenging macro-environment expected through FY25, the CEO remains optimistic about future improvements in sales and profitability. CONN shares fell by 5.64% to $3.01.
April 11, 2024 | 2:24 pm
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Conn's reported a narrower Q4 loss than expected and significant revenue from the Badcock transaction, but missed revenue forecasts. Shares fell 5.64%.
The immediate negative reaction in Conn's stock price is likely due to the revenue miss against analyst expectations, despite the narrower loss and positive comments from the CEO about future prospects. The market may also be reacting to the caution about the challenging macro-environment expected through FY25, overshadowing the potential benefits of the Badcock transaction.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100