Michael Kors Surges After Strong Earnings Report
Shares of Michael Kors (NYSE: KORS) were sharply higher in the pre-market on Tuesday after the company posted better than expected earnings. Shares were up well over 10% early on Tuesday.
Michael Kors reported third quarter earnings of $0.64, better than the $0.41 that was anticipated. Revenue was equally as strong, as the company reported $636.8 million -- more than the $543.64 million that analysts were expecting.
In addition to posting strong earnings, the company also provided positive guidance.
Michael Kors guided fourth quarter earnings in the range of $0.32-0.34 on sales of $515-525 million. This wasn't much different from the consensus analyst estimate of earnings of $0.33 per share on revenue of $517.3 million. More significant, however, was the company's fiscal-year 2013 guidance of earnings of $1.80-1.82 on sales of $2.10 billion. Analysts had only been expecting earnings of $1.56 on sales of $2.01 billion.
Still, perhaps investors should be cautious before putting new money to work in KORS. Shares are currently trading near all-time highs, and as the company has a P/E ratio over 50, shares aren't exactly cheap. Yet, any trader who has shorted KORS since its IPO has lost their shirt.
Michael Kors has been an incredible performer since the company began trading in late 2011. Since then, shares have more than tripled in just over one year.
Shares of Michael Kors traded near $63 early Tuesday, up nearly 11% on the session.
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