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Tailored Brands Still Surging After Q3 Earnings

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Tailored Brands Still Surging After Q3 Earnings

Tailored Brands Inc (NYSE: TLRD) reported Q3 results after market close on Wednesday, drastically beating both top- and bottom-line estimates. EPS of $0.68 compared with a $0.55 estimate, and revenue of $864 million compared with a $832 million estimate.

The market responded in droves, driving the stock up 30 percent by market open Thursday, with the momentum continuing into midday trading bringing the stock up another 10 percent.

Analysts' Commentary

Analysts at Mizuho and Wunderlich came out bullish on the stock: The former upgraded to a Buy rating with a $25 price target, and the latter raising the price target to $30 from $20.

Both firms cited the turnaround from Jos. A. Bank as a key element in their bullishness. The discount suit retailer, which represents 22 percent of Tailored's sales mix, reported comps at -9.8 percent, beating expectations with the company competing against aggressive promotions from the quarter before.

Additionally, the company has closed nearly 200 stores in 2016, and is expected to close 65 more in January, and management cited an expected $50 million in cost savings.

“We project cost savings alone should drive $0.80 in EPS in FY18, higher than our incremental projected increase,” said Wunderlich’s Eric Beder.

At last check, shares of Tailored Brands were trading up 39 percent at $26.30.

Latest Ratings for TLRD

DateFirmActionFromTo
Mar 2020B. Riley FBRMaintainsNeutral
Mar 2020Deutsche BankMaintainsHold
Sep 2019B. RileyMaintainsNeutral

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View the Latest Analyst Ratings

 

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