Oppenheimer: Is Pier 1 More Focused Now Than Ever?

Shares of Pier 1 Imports Inc PIR are up more than 12 percent on Thursday morning, after the company reported upbeat earnings and a strong top-line for the fourth quarter, lifted its dividend, and provided strong guidance. Following the announcement of the financial results, analysts at Oppenheimer reiterated an Outperform rating and a $20 price target on the stock on the back of a “more focused organization.”

Related Link: Pier 1 Imports Q4 Profit Tops Estimates

The report, issued Thursday morning, says that “CEO Alex Smith better defined the nature of recent investments and the dynamics of the evolving PIR business model, indicating that improved cost controls will become a key focus for the organization. Challenges lie ahead for PIR.” The firm is, however, “now even more encouraged that the chain remains on a solid footing and is positioned to demonstrate improved results going forward.”

After the earnings call, the analysts model EPS of $0.86 for fiscal 2015, on revenue of $1.956 billion. For fiscal 2016, they expect EPS of $1.10, on sales of $2.044 billion, and for fiscal 2017, EPS of $1.30 on revenue of $2.136 billion.