Market Overview

Sears Holdings Skyrockets on Q1 Guidance

Sears Holdings (NASDAQ: SHLD) said on Tuesday that it expects to post a first-quarter profit as a result of a large gain from the sale of some of the company's U.S. and Canadian stores.

Sears said that it expects first-quarter earnings from continuing operations of $155 million to $195 million, or between $1.46 to $1.84 per share. Analysts are currently expecting a loss of $1.45 per share for the quarter.

The company also said that its same-store sales fell 1.3% during the first-quarter due to continued declines in appliances and consumer electronics.

Despite the drop in same-store sales, investors are focusing on the company's upbeat guidance. Sears has been struggling from an operational standpoint for years, and investors view the company as a turnaround project.

As a result, the positive forward looking forecast from the company has triggered a strong rally in the name. At last check, SHLD shares were trading up 17.81% at $63.36. This compares to a 52-week range in the volatile retailer of $28.89-$86.72.

Posted-In: News Guidance Intraday Update Movers Best of Benzinga

 

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