Shares of Pier 1 Imports Inc PIR soared in after-hours trading after reporting strong Q3 results and Street-beating guidance. The company reported Q3 EPS of $0.22, beating a consensus estimate of $0.12, and revenue of $475.9 million, compared with an estimate of $466 million. Shares opened up 28 percent on Friday.
Analyst's Take On Strong Print
After the beat and guidance raise, Wedbush analyst Seth Basham maintained a Neutral rating while doubling his 12-month price target from $4 to $8. The analyst stated improved comps (+1.8 percent and merchandise margins, “cleaner” inventories and greater targeting with promotions as key points of success for the company.
“Even with the CEO position in transition,” said Basham, “newfound stability in distribution, inventory management, merchandising, marketing and promotions, as well as easy comparisons ahead, point to results continuing to bounce from depressed levels.”
E-commerce bolstered the company’s outlook as well, with a 28 percent improvement year over year, mostly accelerated by free shipping, according to the analyst.
At last check, shared of Pier 1 were trading up 31 percent at $8.51.
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