New York based children’s clothing retailer, Gymboree Corporation (GYMB), announced a very strong fiscal fourth quarter earnings season that ignited after hours stock trading. The company said its profit was 10% higher for its further quarter this year compared to its fourth quarter from last year.
Revenue that outpaced analyst estimates was cited as the leading contributor to the strong performance. The company’s fiscal quarter ended on February 2nd. Earnings were $26.8 million, or 93 cents per share. During last year’s fourth quarter, the company earned $24.4 million, or 75 cents per share.
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Part of the earnings per share spike was credited to a reduced number of outstanding shares, which helped lead to a higher earnings per share number. Many stock market investment strategies rely on earnings per share as part of the strategic planning.
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Adjusted earnings were reported to be 97 cents per share thanks to some excluded items. While it was uncertain whether Thomson Financial analyst estimates excluded the same items (commonly they do), but expectations had been for 95 cents per share. The stock investing community was excited about the 2 cents per share higher report.
Revenues were actually up 16% for the company which demonstrated strong interest from consumers. Revenues slightly defeated analyst estimates. The company also announced some annual numbers. Gymboree earned $80.3 million, or $2.67 per share, last year. This was significantly more than the $60.3, or $1.82 per share from the previous year. This annual growth should definitely give the stock help.
Many investors quickly added the stock to their trading portfolio in reaction to the strong performance. Long-term investment strategy buyers might be looking for the stock to move from its current price over $38, up past its 52-week high of $45.55. With uncertain economic conditions, however, some long traders may opt for covered calls or covered call investing to take short-term profit following the reactionary spike in the stock’s price.
One year target estimates place the stock at $45.80. While performing stock market research, some investors might be cautious about investing too heavily, given the mixed indicators. The Dow Jones stock index has been extremely volatile as of late. Those who take a more aggressive investment approach would likely profit more gains if the stock moves up. Obviously, though, cautious investors who wait for stronger trading signals may reduce the potential for deep losses.
The economic challenges that are concerning consumers may have an impact on a higher value children’s clothing brand like Gymboree. While clothes are a need for consumers, excessive spending on extra clothes and accessories is often reduced when consumers are protecting their money. Gymboree, like many other retailers that are at least, to an extent, offering discretionary products, are hoping the economic improves quickly and consumers regain confidence in spending.
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[tags] New York, Thomson Financial, GYMB, Gymboree Corp., covered call investing, covered call strategies, investing in stock options, investment strategy, poweroptions, stock help, stock investing, stock market help, stock market investment strategies, stock market research, stock options, stock trading [/tags]