22 minutes ago
Torrid jumps 9% on profit growth
Direct-to-consumer fashion company Torrid rose nearly 9% after its IPO as investors cheered better-than-expected earnings and overlooked disappointing guidance.
Torrid posted a fourth-quarter earnings loss per share of 4 cents, less than the 7 cents expected by analysts polled by FactSet. Comparable store sales declined less than expected while revenue for the quarter was $301.2 million compared to $292.1 million expected by analysts.
The company’s forward guidance also failed. For the first quarter, adjusted EBITDA was forecast at $35 million to $40 million, although analysts had expected $42.5 million. Torrid expects first quarter revenue to be between $305 million and $313 million, down from the consensus estimate of $314.5 million.
Full-year Adjusted EBITDA was forecast to be between $140 million and $152 million, also below the $153 million expectation. However, the company expects full-year sales to be between $1.265 billion and $1.32 billion, up from the expected $1.26 billion.
– Alex Harring
35 minutes ago
Investor pessimism in latest weekly AAII survey nears 50%
Investor pessimism, the American Association of Individual Investors’ latest weekly survey, neared 50%, rising to 48.9% of respondents from 48.4% last week. Upbeat sentiment improved to 20.9% from 19.2%, while neutral sentiment declined to 30.2% from 32.4%.
The survey asks investors about their outlook for stocks over the next six months and is considered a contrarian indicator. High bullish readings are associated with higher risk, while high bearish readings correlate with lower risk.
“Optimism is at unusually low levels for the fifth consecutive week and the 45th time in the past 64 weeks,” AAII said.
Meanwhile, Investors Intelligence’s weekly survey of financial newsletter publishers found that bulls fell to 39.7% from 40.3% last week; Bears grow from 27.8% to 28.8%; and the percentage of editors expecting a correction drops a fraction, from 31.9% to 31.5%.
– Scott Snapper
50 minutes ago
Indices are on track to gain the week with one session left
With only Friday session left in the trading week, the three major indices are on course to close higher.
The Nasdaq Composite posted its biggest gain so far this week, up 1.4%, as investors bet the end of the Federal Reserve’s rate hike campaign could be near.
Meanwhile, the Dow and S&P 500 are both poised to climb 0.8% this week.
– Alex Harring
Before an hour
Parent of Tommy Bahama slides after first-quarter earnings outlook fell short of expectations
Oxford Industries tumbled 5.5% in extended trading after the parent company of Tommy Bahama, Lilly Pulitzer and Southern Tide issued weak first-quarter guidance when it reported earnings.
The company expects earnings per share for the first quarter to be between $3.60 and $3.80, in line with the consensus estimate of $4.09 from analysts polled by FactSet. Sales are expected to be between $405 million and $425 million, while analysts were expecting $411.5 million.
For the full year, Oxford Industries forecast earnings per share of between $11.50 and $11.90, in line with analyst estimates of $11.82. And the company has set its expectations for full-year sales at $1.62 billion to $1.66 billion, ahead of the $1.60 billion expected by Wall Street.
Oxford Industries beat consensus estimates by analysts polled by FactSet for fourth-quarter earnings and sales per share. Revenue was $382.5 million versus $378.7 million expected, while earnings per share of $2.28 were 14 cents ahead of estimate.
– Alex Harring
Before an hour