DSW Inc. (NYSE: DSW) is having an overwhelmingly strong start to the day in the pre-market hours this morning, and for good reason. The company released its earnings report for the second quarter, blowing away expectations. On top of that the company also announced a share repurchase program that seems to be yet another source of excitement. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:28), DSW is trading at $18.70 per share after a gain of $3.01 per share or 19.18% thus far today.
DSW Gains On Strong Earnings
As mentioned above, DSW is having an incredible morning this morning after releasing its earnings report for the second quarter. Here’s what we saw from the report…
Earnings Per Share – In terms of earnings per share, DSW did overwhelmingly well. During the quarter, analysts expected that the company would generate earnings in the amount of $0.29 per share. However, the company actually reported earnings in the amount of $0.38 per share, $0.09 ahead of expectations.
Revenue – Revenue also proved to be overwhelmingly strong. During the quarter, analysts expected that the company would generate revenue in the amount of $666.66 million. However, the company actually generated revenue in the amount of $680.4 million.
Guidance – DSW also informed its investors that guidance was on track. During FY18, the company is expecting to see earnings per share come in the range between $1.45 per share and $1.55 per share. This is overwhelmingly positive considering that analysts currently expect that the company will report full year EPS at $1.44 per share.
Share Repurchase Program – Finally, DSW announced that its Board of Directors has approved a new share repurchase program, authorizing the repurchase of $500 million in common stock. This is in addition to the current authorization to repurchase a remaining $33 million. This is big news. In fact, since 2013, the company has sent around $600 million to investors in dividends and share repurchases.
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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 company to see if they do indeed reach the high bar they’ve set for themselves for the year 2018. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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