Francesca’s Holdings Earnings: Here’s Why Investors are Selling Shares Now

Francesca’s Holdings Corp (NASDAQ:FRAN) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 8.16%.

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Francesca’s Holdings Corp Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 30% to $0.26 in the quarter versus EPS of $0.20 in the year-earlier quarter.

Revenue: Rose 28.83% to $79 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Francesca’s Holdings Corp reported adjusted EPS income of $0.26 per share. By that measure, the company missed the mean analyst estimate of $0.26. It missed the average revenue estimate of $79.56 million.

Quoting Management: Neill Davis, Chief Executive Officer, commented, “We delivered on our earnings expectations as well as several strategic goals in the first quarter. We opened 56 new boutiques increasing our market presence to 416 boutiques, achieved record direct-to-consumer sales now representing 2.1% of total Company sales for the quarter, and successfully completed the rollout of our new point-of-sale system in our boutiques. Our continued execution on key growth initiatives combined with our differentiated business model and unique brand experience position us well for long term growth.”

Key Stats (on next page)…

Revenue decreased 8.88% from $86.7 million in the previous quarter. EPS decreased 21.21% from $0.33 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.35 and has not changed. For the current year, the average estimate has moved up from a profit of $1.27 to a profit of $1.3 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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