Stitch Fix stock soared Tuesday after the company reported quarterly earnings that not only beat estimates but also its outlook, prompting price-target upgrades from Wall Street.
XStitch Fix (SFIX), an online provider of personalized apparel purchasing services, said fiscal second-quarter revenue was $370.3 million. That was up 25% from the year-ago period and ahead of Wall Street estimates for $365 million.
Adjusted earnings per share of 12 cents smashed views of 5 cents for the period ended Jan. 26.
Stitch Fix stock catapulted 25.2%, closing at 33.78 on the stock market today. The company held its initial public offering in November 2017, pricing shares at 15.
Stitch Fix Stock Upgrades
RBC Capital Markets analyst Mark Mahaney raised his price target on Stitch Fix stock to 52 from 39, with a rating of outperform.
"We are increasingly impressed by the consistency of Stitch Fix's financial results," Mahaney wrote in a research note to clients.
KeyBanc Capital Markets analyst Edward Yruma raised his price target on Stitch Fix stock to 40, from 38, with an outperform rating.
"Strong results were hindered somewhat by inventory constraints, but we think that this can be remedied quickly and is an interesting juxtaposition to traditional retailers that continue to grapple with high inventory levels," Yruma wrote in a note to clients.
Active clients rose 18% from the year-ago period to 3 million.
Stitch Fix provides an online styling service that delivers personalized clothing to its members. Shipping is free, as are returns. The company uses data analytics in its decision-making process for selecting apparel.
"Since becoming a public company, we have posted six consecutive quarters of over 20% growth, which demonstrates our ability to drive consistent business performance," Chief Executive Katrina Lake said in written comments.
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The post Stitch Fix Stock Soars On Strong Quarterly Earnings Report appeared first on Investor's Business Daily.
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