Cabela's Rocketing On Strong Volume (CAB)

Cabela's Inc.

is skyrocketing today, up nearly 20% after the outdoors accessory company reported stronger than expected earnings. Earnings for the third quarter rose to 29 cents per share, up from 28 cents last year. Excluding the sale of its Van Dyke's Restorer's unit, earnings came in at 31 cents per share. Cabela's reported third quarter revenues of $643.3 million, up from $624.4 million last year. Analysts had expected 28 cents per shre on revenues of $609.5 million. Same store sales revenue rose 2.4% in the quarter. Merchandise gross margins rose to 34.5%, which helped the bottom line. "Three ongoing initiatives contributed to margin expansion in the quarter: better pre-season planning, greater vendor collaboration and improvements in in-season management," CEO Tommy Millner said in a statement. At last check, shares of Cabela's were up $3.73 to $22.01, a gain of 20.4%.