Cato Shares Lower Amid Solid Q1 Results, FY Outlook; Q2 Guidance Weighs

The Cato Corporation CATO announced its fiscal first quarter earnings Tuesday to a bearish response by investors.

The company reported a net income of $30 million which is down three percent year-over-year. Sales for this quarter were up six percent from the first quarter last year to $282.5 million.

Analysts estimated Cato to report its first quarter earnings at $1.04 per share on revenue of $284.90 million.

EPS of $1.04 is down one percent year-over-year.

Chairman, President and CEO John Cato offered some guidance for the full-year and second quarter, respectively, stating "our estimated earnings per diluted share for the full year is now a range of $1.66 to $1.79 versus $1.86 last year and versus original guidance of $1.47 to $1.66. [as well as] the revised earnings per diluted share estimate for the second quarter is a range of $0.40 to $0.45 versus $0.51 last year."

Cato is down almost percent to $28.30 at last checked trade Tuesday.