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| Company Name | Symbol | %Change |
|---|---|---|
| ALLIANCE FIB | AFOP | 14.13% |
| TRI TECH HOL | TRIT | 9.56% |
| A M R CP | AAMRQ | 8.29% |
| NOAH HOLDING | NOAH | 7.69% |
| SANTARUS INC | SNTS | 6.75% |
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In the world of men’s clothing, Joseph A. Bank ( JOSB - Snapshot Report ) has become extremely well-known thanks to its aggressive marketing and rock-bottom deals. However, the company’s strategy may not be paying off on the earnings front, leaving many investors gloomy over the firm’s prospects.
In fact, JOSB recently reported earnings that missed analyst expectations by a pretty wide margin. The firm saw EPS of just 47 cents a share, 14.55% below the consensus estimate of 55 cents a share.
Thanks to this miss and some gloomy profit predictions for the next quarter and year, many are starting to wonder if the company’s discount-centric model can keep bringing in profits over the long haul. It also appears as though consumers are tiring of the firm’s tactics and that big sales are not driving revenue like they once did for JOSB.
Analysts are taking notice of this trend with many slashing their estimates for the company. The firm has seen all of its analyst estimates go down for the current quarter and current year, with one analyst in particular slashing their current quarter estimate to just 96 cents from their previous target of $1.70/share.
Joseph A. Bank also compares unfavorably with its own industry for several key metrics. JOSB has a lower growth rate and return on equity than the industry average, while its ROE is also slightly lower than the industry.
This is especially poor news considering how bad the industry is looking from a Zacks Industry Rank perspective. This segment currently has a Rank of just 207 out of 265, meaning that there are a number of better choices out there from a sector perspective as well.
These factors have pushed Joseph A. Bank to a Zacks Rank of 5 or ‘Strong Sell’ suggesting that weakness could be in the cards for this company in the short term. Although it should be noted that the company also has a Zacks Recommendation of ‘underperform’ so the longer-term outlook isn’t any better for this troubled-firm.
Thanks to these items, JOSB has been under significant pressure as of late, having lost more than 15% in the trailing one year period. The company has also lost over 6.3% to start 2013, so it is clearly going in the opposite direction as the broad market to start the New Year.
Given this, investors should probably stay away from this stock for the time being, or at least until JOSB can turn around its estimates picture. The firm is facing too many headwinds right now, and it seems likely that more pain is in this retailer’s future.
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Read the full Snapshot Report on JOSB