Shoe retailer DSW stock plunges after company blames hurricanes for earnings miss

Paola Ditto
Novembre 21, 2017

17 analysts on average are expecting DSW report earnings of $0.16 per share for the current quarter. DSW has a 12 month low of $15.14 and a 12 month high of $25.96.

DSW Inc. (NYSE) gained 9.65 Percent and closed its previous trading session at $22.15. The company's stock had a trading volume of 4,517,000 shares, compared to its average volume of 2,097,209. The firm has a market capitalization of $1,779.71, a price-to-earnings ratio of 15.71, a P/E/G ratio of 2.40 and a beta of 0.79.

The company updated its full year outlook for adjusted earnings in the range of $1.40 to $1.45 per diluted share to reflect lower expectations for Ebuys and the impact of weather related disruptions this quarter. The company reported $0.45 EPS for the quarter, missing analysts' consensus estimates of $0.53 by ($0.08). Net income for the quarter to October 28 fell to $4.0 million, or 5 cents a share, from $39.0 million, or 47 cents a share, in the same period a year ago.

DSW Inc.'s revenue of $708.31 million also didn't help out DSW stock at all today, despite being an increase from the $696.62 million reported in the third quarter of 2016. During the same quarter a year ago, the firm posted $0.51 EPS.

Several analysts are forecasting growth estimate of DSW Inc. for the current quarter to be 3.9%.

DSW declared that its Board of Directors has initiated a share repurchase plan on Tuesday, August 22nd that allows the company to repurchase $500.00 million in outstanding shares. Stock repurchase plans are generally an indication that the company's board believes its stock is undervalued.

Investors are more bearish on the company recently considering the increase in short interest. Deutsche Bank AG restated a "buy" rating and issued a $22.00 price objective (up previously from $21.00) on shares of DSW in a research report on Wednesday, August 23rd. Finally, Standpoint Research raised DSW from a "hold" rating to a "buy" rating in a research report on Friday, October 20th. One equities research analyst has rated the stock with a sell rating, thirteen have assigned a hold rating, five have issued a buy rating and one has issued a strong buy rating to the stock.

In terms of Buy, Sell or Hold recommendations, DSW Inc (NYSE:DSW) has analysts' mean recommendation of 2.7. The stock was sold at an average price of $20.00, for a total transaction of $1,509,040.00. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink.

In other news, EVP William L. Jordan sold 2,666 shares of the business's stock in a transaction that occurred on Monday, August 28th. The shares were sold at an average price of $20.03, for a total value of $53,399.98. Following the transaction, the executive vice president now directly owns 51,588 shares in the company, valued at approximately $1,099,856.16. The disclosure for this sale can be found here.

A stock rating usually tells investors how well a stock's market value relates to what analysts think is a fair value for the stock, based on an independent evaluation of the company. BlackRock Inc. grew its position in DSW by 42,735.5% in the 1st quarter. MIG Capital LLC now owns 1,960,000 shares of the company's stock worth $34,692,000 after purchasing an additional 218,792 shares during the last quarter. Teachers Advisors LLC lifted its holdings in shares of DSW by 5.6% in the 1st quarter.

The TTM operating margin for the company stands at 7.3%.

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