Monday, January 12, 2015

Burlington Stores (BURL) Stock Gains on Increased 2014 Guidance

NEW YORK (TheStreet) -- Burlington Stores shares are up 3.6% to $49.73 on heavy trading volume Monday after the clothing retailer boosted its fourth quarter and full year 2014 net sales estimates after the closing bell on Friday. For the quarter, the company now sees net sales increasing between 9.6% and 10.1%, up from its previous view of between 7.2% and 8.2%. For the full year the company now expects revenue to grow between 8.2% and 8.4%, up from its previous view of between 7.5% and 7.8%. The company started the year forecasting net sales growth at 5.8%. Full year earnings per share are expected to be between $1.70 and $1.72, up from its prior guidance between $1.65 and $1.67 per share. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates BURLINGTON STORES INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: "We rate BURLINGTON STORES INC (BURL) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time." Highlights from the analysis by TheStreet Ratings Team goes as follows: The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Multiline Retail industry. The net income has significantly decreased by 103.0% when compared to the same quarter one year ago, falling from -$16.86 million to -$34.21 million. BURLINGTON STORES INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This year, the market expects an improvement in earnings ($1.68 versus $0.61). 40.09% is the gross profit margin for BURLINGTON STORES INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -2.93% trails the industry average. Net operating cash flow has improved to $36.93 million from having none in the same quarter last year. Since the company had no net operating cash flow for the prior period, we cannot calculate a percent change in order to compare its growth rate with that of its industry average. The revenue growth came in higher than the industry average of 3.8%. Since the same quarter one year prior, revenues slightly increased by 8.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. You can view the full analysis from the report here: BURL Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


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