Gathering momentum from the better-than-expected first-quarter fiscal 2013 bottom-line results, shares of New York & Company, Inc. (NWY) surged to attain a new 52-week high of $5.87 on Jun 4, 2013, before closing at $5.71. This Zacks Rank #1 (Strong Buy) stock has generated a year-to-date return of approximately 52%.
Based on the current price, this specialty retailer of women's fashion attire and accessories is 8.8% above the Zacks Consensus average analyst price target of $5.25. The company currently trades at a forward P/E of 55.26x, a sharp premium to the peer group average of 18.66x.
New York & Company came out with the results for the recently concluded quarter on May 23, wherein earnings of 2 cents a share fared better than the Zacks Consensus Estimate’s loss of 7 cents as well as from the comparable year-ago quarter’s break-even earnings on the back of improved margins and tax benefits associated to the reversal of an uncertain tax position.
If we look at the company’s earnings surprise history, New York & Company has outperformed the Zacks Consensus Estimate for 5 straight quarters by an average of 60.8%. In the recent concluded quarter, the company beat the Zacks Estimate by 128.6%. The long-term expected earnings growth rate for this stock is 20%.
Net sales remained almost flat year over year at $227.5 million but came ahead of the Zacks Consensus Estimate of $222 million. Gross profit for the quarter increased 2.8% to $66.3 million, whereas gross margin expanded 90 basis points to 29.2%, benefiting from increased markups from sourcing efficiencies and lower product costs.
New York & Company has been witnessing rising earnings estimates owing to impressive quarterly results. The Zacks Consensus Estimate for fiscal 2013 jumped to 10 cents a share from a loss of 3 cents in the last 30 days. For fiscal 2014, the Zacks Consensus Estimate surged to 24 cents from 9 cents over the same time frame.
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