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Children's Place (PLCE) Up on Q4 Earnings Beat, Dividend Hike
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The Children's Place, Inc. (PLCE - Free Report) is an investor favorite at the moment as it surged more than 18% after the company reported better-than-expected fourth-quarter fiscal 2016 results. In the past six months, this specialty retailer of children's apparel has witnessed a massive gain of 45.7%, outperforming the Zacks categorized Retail-Apparel/Shoe industry which has declined 14.3%.
The Children's Place has a long-term earnings growth rate of 10.3%, which highlights its inherent strength. Moreover, the company provided robust first-quarter and fiscal 2017 outlook and doubled its quarterly dividends, which further gives an indication that the stock will carry the momentum ahead. This Zacks Rank #2 (Buy) company’s recent performance speaks volumes of its popularity among investors. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company reported fourth-quarter fiscal 2016 adjusted earnings per share of $1.88, surpassing the Zacks Consensus Estimate of $1.59 and surged 58% year over year. Notably, the company’s earnings have beaten the Zacks Consensus Estimate in the trailing six quarters.
Further, the company’s revenue increased 4.5% year over year to $520.8 million and surpassed the Zacks Consensus Estimate of $512 million. Additionally, comparable retail sales jumped 6.9%.
Gross profit increased 5.8% year over year to $187.9 million, while gross margin expanded 50 basis points (bps) to 36.1%. The company reported adjusted operating income of $50 million compared with $33.5 million in the prior-year quarter. Moreover, operating margin increased 290 bps to 9.6%.
Children's Place, Inc. (The) Price, Consensus and EPS Surprise
The Children's Place ended the quarter with cash and cash equivalents of $193.7 million, inventories of $286.3 million and shareholders’ equity of $496.3 million.
Moreover, the board of directors announced a new share repurchase program of $250 million and also raised the quarterly dividend to 40 cents from 20 cents. The dividend will be paid on May 1, 2017 to stockholders of record as of Apr 10, 2017.
Guidance
Following sturdy performance, the company provided an upbeat outlook. Management now envisions adjusted earnings per share for fiscal 2017 in the range of $6.50–$6.65 compared with fiscal 2016 adjusted earnings of $5.43. The comparable sales are expected to increase in low-single digit.
For first-quarter fiscal 2017, the company projected adjusted earnings per share in the range of $1.53–$1.63 compared with $1.32 reported in the year-ago quarter.
The Zacks Consensus Estimate for the first quarter and fiscal 2017 is currently pegged at $1.59 and $5.17, respectively.
Other Stocks to Consider
Other favorably placed stocks in the retail sector include Kate Spade & Company , DSW Inc. and Genesco Inc. (GCO - Free Report) , all the three stocks carry a Zacks Rank #2.
Kate Spade & Company delivered an average positive earnings surprise of 14.6% in the trailing four quarters and has a long-term earnings growth rate of 28.3%.
DSW delivered an average positive earnings surprise of 21.7% in the trailing four quarters and has a long-term earnings growth rate of 6.8%.
Genesco delivered an average positive earnings surprise of 31.4% in the trailing four quarters and has a long-term earnings growth rate of 9.5%.
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Children's Place (PLCE) Up on Q4 Earnings Beat, Dividend Hike
The Children's Place, Inc. (PLCE - Free Report) is an investor favorite at the moment as it surged more than 18% after the company reported better-than-expected fourth-quarter fiscal 2016 results. In the past six months, this specialty retailer of children's apparel has witnessed a massive gain of 45.7%, outperforming the Zacks categorized Retail-Apparel/Shoe industry which has declined 14.3%.
The Children's Place has a long-term earnings growth rate of 10.3%, which highlights its inherent strength. Moreover, the company provided robust first-quarter and fiscal 2017 outlook and doubled its quarterly dividends, which further gives an indication that the stock will carry the momentum ahead. This Zacks Rank #2 (Buy) company’s recent performance speaks volumes of its popularity among investors. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The company reported fourth-quarter fiscal 2016 adjusted earnings per share of $1.88, surpassing the Zacks Consensus Estimate of $1.59 and surged 58% year over year. Notably, the company’s earnings have beaten the Zacks Consensus Estimate in the trailing six quarters.
Further, the company’s revenue increased 4.5% year over year to $520.8 million and surpassed the Zacks Consensus Estimate of $512 million. Additionally, comparable retail sales jumped 6.9%.
Gross profit increased 5.8% year over year to $187.9 million, while gross margin expanded 50 basis points (bps) to 36.1%. The company reported adjusted operating income of $50 million compared with $33.5 million in the prior-year quarter. Moreover, operating margin increased 290 bps to 9.6%.
Children's Place, Inc. (The) Price, Consensus and EPS Surprise
Children's Place, Inc. (The) Price, Consensus and EPS Surprise | Children's Place, Inc. (The) Quote
Other Financial Details
The Children's Place ended the quarter with cash and cash equivalents of $193.7 million, inventories of $286.3 million and shareholders’ equity of $496.3 million.
Moreover, the board of directors announced a new share repurchase program of $250 million and also raised the quarterly dividend to 40 cents from 20 cents. The dividend will be paid on May 1, 2017 to stockholders of record as of Apr 10, 2017.
Guidance
Following sturdy performance, the company provided an upbeat outlook. Management now envisions adjusted earnings per share for fiscal 2017 in the range of $6.50–$6.65 compared with fiscal 2016 adjusted earnings of $5.43. The comparable sales are expected to increase in low-single digit.
For first-quarter fiscal 2017, the company projected adjusted earnings per share in the range of $1.53–$1.63 compared with $1.32 reported in the year-ago quarter.
The Zacks Consensus Estimate for the first quarter and fiscal 2017 is currently pegged at $1.59 and $5.17, respectively.
Other Stocks to Consider
Other favorably placed stocks in the retail sector include Kate Spade & Company , DSW Inc. and Genesco Inc. (GCO - Free Report) , all the three stocks carry a Zacks Rank #2.
Kate Spade & Company delivered an average positive earnings surprise of 14.6% in the trailing four quarters and has a long-term earnings growth rate of 28.3%.
DSW delivered an average positive earnings surprise of 21.7% in the trailing four quarters and has a long-term earnings growth rate of 6.8%.
Genesco delivered an average positive earnings surprise of 31.4% in the trailing four quarters and has a long-term earnings growth rate of 9.5%.
8 Stocks with Huge Profit Potential
Just released: Driverless Cars: Your Roadmap to Mega-Profits Today. In this latest Special Report, Zacks’ Aggressive Growth Strategist Brian Bolan explores a full-blown technological breakthrough in the making – autonomous cars. He also spotlights 8 stocks with tremendous gain potential to feed off this phenomenon. Click to see the stocks right now >>