Express Tops Q4 Expectations, Shares Surge

Shares of

jumped over 12 percent in pre-market trading after the company reported stronger-than-expected results for the third quarter. The Columbus, Ohio-based company reported a quarterly profit of $26.3 million, or $0.31 per share, versus a year-ago profit of $14.6 million, or $0.17 per share. Its revenue climbed 9.8 percent to $546.6 million. However, analysts were expecting earnings of $0.29 per share on revenue of $541.4 million. The average estimate among 26 Estimize users was for earnings of $0.30 per share and revenue of $544.28 million. Its sales at stores open at least a year, including e-commerce sales, surged 6 percent. E-commerce sales climbed 6 percent to $83.8 million. Gross profit margin widened to 35 percent from 31.7 percent. Operating income increased to $44.5 million from $30.5 million. At the end of the quarter, the company had $91 million in cash and cash equivalents, compared to $218 million at the end of the year-ago quarter. David Kornberg, the Company's President and Chief Executive Officer said, "Our holiday 2015 assortment consists of great fashion pieces blended with strong key items, whether for gifting or self-purchase. While we expect the holiday season to remain highly competitive, we believe we are well positioned, and our positive outlook for the season is reflected in our guidance." For the year ending in January, the company now projects earnings of $1.38 to $1.42 per share, versus its prior forecast of $1.30 to $1.37 per share. For the fourth quarter, the company expects profit of $0.60 to $0.64 per share, versus analysts' expectations of $0.61 per share. Express shares gained 12.08 percent to $19.49 in pre-market trading.