Sears Holdings Skyrockets on Q1 Guidance
Sears Holdings (NASDAQ: SHLD) said on Tuesday that it expects to post a first-quarter profit as a result of a large gain from the sale of some of the company's U.S. and Canadian stores.
Sears said that it expects first-quarter earnings from continuing operations of $155 million to $195 million, or between $1.46 to $1.84 per share. Analysts are currently expecting a loss of $1.45 per share for the quarter.
The company also said that its same-store sales fell 1.3% during the first-quarter due to continued declines in appliances and consumer electronics.
Despite the drop in same-store sales, investors are focusing on the company's upbeat guidance. Sears has been struggling from an operational standpoint for years, and investors view the company as a turnaround project.
As a result, the positive forward looking forecast from the company has triggered a strong rally in the name. At last check, SHLD shares were trading up 17.81% at $63.36. This compares to a 52-week range in the volatile retailer of $28.89-$86.72.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.