Law Offices of Howard G. Smith Announces Investigation on Behalf of Investors of Conn’s, Inc.
BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that it is investigating potential claims on behalf of investors of Conn’s, Inc. (“Conn’s” or the “Company”) (NASDAQ:CONN) concerning possible violations of federal securities laws. The investigation focuses on certain statements issued by Conn’s concerning the Company’s operations and financial performance and prospects.
“reflects the impact of increased provision for bad debt due to higher-than-expected accounts receivable charge-offs and delinquency rates in December and January, and portfolio growth.”
Conn’s is a specialty retailer of durable consumer products, including home appliances, furniture, consumer electronics and home office products. The investigation is related to the Company’s February 20, 2014, announcement of preliminary fourth-quarter fiscal 2014 financial results and updated fiscal 2015 earnings guidance. The Company announced that it expects diluted earnings per share for the fourth quarter of fiscal 2014 and the three months ended January 31, 2014, to be below the Company’s previously issued full-year fiscal 2014 guidance. According to a Company-issued press release, the decline “reflects the impact of increased provision for bad debt due to higher-than-expected accounts receivable charge-offs and delinquency rates in December and January, and portfolio growth.”
The Company also updated its full-year fiscal 2015 earnings guidance “to reflect the impact of higher-than-anticipated recent delinquency rates and lower expected sales increases, principally in the electronics category.” The Company currently expects to generate diluted earnings per share of $3.40 to $3.70 for the fiscal year ending January 31, 2015, which is below previous guidance of $3.80 to $4.00 per diluted share. Following this news, Conn’s stock dropped as much as 40% below its previous closing price, in intraday trading on February 20, 2014.
If you purchased Conn’s shares, if you have information or would like to learn more about these claims, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.