Conn's (CONN) and Susser Holdings (SUSS) - Zacks #1 Rank Top Performers

Conn’s Inc. (CONN) has a big blocker in the state of Texas, which has been holding up better than most of the other 49 during this economic malaise.

This specialty retailer, based in Beaumont, Texas that also has locations in Louisiana and Oklahoma, saw a sharp rise in earnings estimates after its fiscal second-quarter report, and today had a prominent position in the Zacks #1 Rank Top Performers List.

Shares gained almost 3.1% Wednesday, which made CONN one of the better-performing Zacks #1 Ranks with a share price over $5.

Its second-quarter report wasn’t all good news, as total sales slipped 13.5% and same-store sales dropped 12.8%. However, earnings per share of 17 cents surpassed the Zacks Consensus Estimate by practically 55%. Operating income almost doubled as well.

CONN said that the changes it has made so far will drive improved profitability moving forward, and forecasted EPS between 65 cents and 75 cents for fiscal 2012. That was better than the Zacks Consensus Estimate at the time.

Led by that full-year outlook, the results were enough to launch the Zacks Consensus Estimate for this fiscal year by 40% over the past 2 months to 70 cents from 50 cents. Meanwhile, the outlook for next fiscal year, ending January 2013, gained 13.5% in that time to 84 cents from 74 cents.

In addition, analysts currently expect EPS for next fiscal year to advance 20% from this fiscal year.

Texas is surely big enough to handle another Zacks #1 Rank Top Performer today. Such was the case for Corpus Christi-based Susser Holdings Corporation (SUSS), which gained 3% on Wednesday; a day when it offered an operating results update for the third quarter.

This convenience store and gas station operator expects same-store merchandise sales growth of about 7.4% against last year. Furthermore, retail average per-store fuel volumes should increase 5.6%.

As has been reported in this article before, SUSS had a solid second quarter performance in August. Earnings per share of $1.36 beat the Zacks Consensus Estimate of 53 cents by as much as 156%, while revenue increased to $1.38 billion from $1.02 billion last year. Driving this positive performance were contributions from new stores, a continued strong same-store performance and higher margins at its fuel business.

The company’s earnings estimates retain the bump from that second-quarter report. The Zacks Consensus Estimate for 2011 is at $1.93 per share, or 7.8% better than 2 months ago. The outlook for 2012 is at $1.31 per share, up 7.4% in that time.

The company will report its third quarter results on Nov 9.