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Strength Seen in Build-A-Bear (BBW): Can Its 39.3% Jump Turn into More Strength?
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Build-A-Bear (BBW - Free Report) shares ended the last trading session 39.3% higher at $14.07. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 29.8% gain over the past four weeks.
Shares of Build-A-Bear got a boost from robust first-quarter fiscal 2021 results, wherein the top and the bottom line not only improved year on year, but also surpassed the Zacks Consensus Estimate. Encouragingly, the company witnessed sales growth across both its brick-and-mortar and digital channels, despite some of its stores in Europe being temporarily shut due to the pandemic. Management believes that the quarterly performance was supported by strong brand image, merchandising mix, digital marketing efforts as well as the benefits stemming from favorable demand conditions and the stimulus package. Going ahead, the company continues to focus on bolstering digital capabilities. Management highlighted that the company’s sales for the second-quarter have so-far continued to remain strong. Backed by such trends the company expects revenues to increase in fiscal 2021.
During the first-quarter, the company posted adjusted earnings of 60 cents per share that comfortably surpassed the Zacks Consensus Estimate of a loss of 53 cents. In the year-ago quarter, the company posted a loss of 83 cents. Total sales were $91.7 million, which came ahead of the Zacks Consensus Estimate of $42.9 million and increased 96.7% from the year-ago quarter.
Price and Consensus
This toy retailer is expected to post quarterly loss of $0.19 per share in its upcoming report, which represents a year-over-year change of +76.8%. Revenues are expected to be $39.69 million, down 1.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Build-A-Bear, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on BBW going forward to see if this recent jump can turn into more strength down the road.
Image: Bigstock
Strength Seen in Build-A-Bear (BBW): Can Its 39.3% Jump Turn into More Strength?
Build-A-Bear (BBW - Free Report) shares ended the last trading session 39.3% higher at $14.07. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 29.8% gain over the past four weeks.
Shares of Build-A-Bear got a boost from robust first-quarter fiscal 2021 results, wherein the top and the bottom line not only improved year on year, but also surpassed the Zacks Consensus Estimate. Encouragingly, the company witnessed sales growth across both its brick-and-mortar and digital channels, despite some of its stores in Europe being temporarily shut due to the pandemic. Management believes that the quarterly performance was supported by strong brand image, merchandising mix, digital marketing efforts as well as the benefits stemming from favorable demand conditions and the stimulus package. Going ahead, the company continues to focus on bolstering digital capabilities. Management highlighted that the company’s sales for the second-quarter have so-far continued to remain strong. Backed by such trends the company expects revenues to increase in fiscal 2021.
During the first-quarter, the company posted adjusted earnings of 60 cents per share that comfortably surpassed the Zacks Consensus Estimate of a loss of 53 cents. In the year-ago quarter, the company posted a loss of 83 cents. Total sales were $91.7 million, which came ahead of the Zacks Consensus Estimate of $42.9 million and increased 96.7% from the year-ago quarter.
Price and Consensus
This toy retailer is expected to post quarterly loss of $0.19 per share in its upcoming report, which represents a year-over-year change of +76.8%. Revenues are expected to be $39.69 million, down 1.6% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Build-A-Bear, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on BBW going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>