DSW Inc. (NYSE: DSW) is having an overwhelmingly strong start to the trading session this morning, and for good reason. The company released its earnings results for the second quarter, blowing away expectations and raising full-year guidance. Today, we’ll talk about:
- What we saw from earnings;
- what we’re seeing from DSW stock as a result; and
- what we’ll be watching for ahead.
DSW Soars On Strong Earnings
As mentioned above, DSW is having an incredibly strong start to the trading session this morning after reporting earnings for the second quarter. Here’s what we saw from the report:
- Revenue – In terms of revenue, the company did overwhelmingly well. During the second quarter, analysts expected that the company would report revenue in the amount of $691 million. However, revenue actually came in at $793.7 million. Not only did this figure beat expectations, it showed overwhelmingly strong year over year growth from $681.7 million.
- Earnings – In terms of earnings, adjusted earnings per share came in at $0.63. Analysts expected that DSW would report earnings per share in the amount of $0.46.
- Same Store Sales – Also, same-store sales climbed as well. During the quarter, same store sales were up by 9.7%. Analysts expected that same-store sales would be up by 2.7%.
- Guidance – Finally, DSW said that it is expecting for full year earnings to come in between $1.60 per share and $1.75 per share. That figure was increased from between $1.52 per share and $1.67 per share. Analysts are expecting for full year earnings to come in around $1.61 per share. In terms of revenue, the company said that it is expecting a full year rise between 6% and 9%, up from between 1% and 3%.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news causes the moves. In the case of DSW, the news proved to be overwhelmingly positive. Not only did the company beat expectations with regard to both the top line and bottom line, it guided for stronger growth than it led investors to expect in the past. So, it comes as no surprise that excitement is hitting the market and the stock is soaring this morning. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:26), DSW is trading at $33.85 per share after a gain of $6.65 per share or 24.45% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on DSW. In particular, we’re interested in following the story surrounding the company’s continued growth as the quarter proved to be overwhelmingly positive. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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