The Children’s Place Retail Stores Earnings: Here’s Why Investors are Selling Shares Now

The Children’s Place Retail Stores, Inc. (NASDAQ:PLCE) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 5.46%.

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The Children’s Place Retail Stores, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 32.18% to $1.15 in the quarter versus EPS of $0.87 in the year-earlier quarter.

Revenue: Rose 11.31% to $509.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Children’s Place Retail Stores, Inc. reported adjusted EPS income of $1.15 per share. By that measure, the company beat the mean analyst estimate of $1.04. It beat the average revenue estimate of $496.04 million.

Quoting Management: President and Chief Executive Officer Jane Elfers commented, “We continued to make significant progress during 2012 and had a strong finish to the year. We delivered record sales of $1.8 billion in fiscal 2012 and a 2% increase in comparable retail sales. Non-GAAP earnings per share increased 11% to $3.23. In addition, we generated $205 million in cash from operations during the year and returned approximately $89 million to shareholders through our share buyback program.”

Key Stats (on next page)…

Revenue increased 1.65% from $500.93 million in the previous quarter. EPS decreased 28.13% from $1.60 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.20 to a profit $1.19. For the current year, the average estimate is a profit of $3.13, which is the same with that ninety days ago.

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