Insight on Express Inc.’s (NYSE:EXPR) Financial conditions


Express Inc.’s (NYSE:EXPR) expected price target was elevated from $15 to $17, by Roxanne Meyer, an analyst from UBS. Ms. Meyer asserts that this elevation in price target is owing to the progressive growth observed in the company’s performance.

The financial results of the company, for the fourth quarter of fiscal year 2015, surpassed the estimate of consensus analysts. The EPS reported by Express Inc. (NYSE:EXPR) was 49 cents; while the estimate lagged behind the actual EPS by 3 cents. The gross revenue of the quarter, which was $725.8 million, also reflected a YoY growth of approximately 1.4%, in comparison with the company’s revenue of the previous year.

Furthermore, Ms. Meyer also sheds light upon the fact that the company has set forth its guided EPS, even before the analysts had given their estimate. This move by Express Inc. (NYSE:EXPR) clearly indicates that it has a lot of trust in its corporate performance. She also delineated certain other real signs of progress in the company, such as its improved fashion sense, its management of inventories in a very satisfactory fashion and its continued efforts to bring down its rate of promotions, so that as a direct corollary, improvement can be brought in the company’s overall performance.

Express Inc. (NYSE:EXPR) has also been paying a lot of well deserved attention to e-commerce, enhancing customer experience along with brand propagation. Moreover, these three factors are kept in line with the company’s overall strategy, of not only maintaining, rather improving its profitability. In this regard, Ms. Meyer duly appreciated Express Inc.’s (NYSE:EXPR) CEO, David Kornberg, for his unflinching efforts.

These reasons have compelled UBS to elevate the company’s estimate from $15 to $17 on its apparel maker. While the consensus estimate of Express Inc.’s (NYSE:EXPR) EPS of first quarter of fiscal year 2013 is $0.11, UBS has elevated it even further to $0.13 from $0.06. Its figures for the second quarter of the same year delineate a rise from $0.08 to $0.11. This trend of increase is also reiterated in the third quarter, with the EPS undergoing a rise from $0.22 to $0.24. In the fourth quarter, it is estimated to increase from $0.54 to $0.59.

Not only has UBS elevated its EPS estimates of this year, rather it has also done so for the next two years. In fiscal year 2017, its estimate has been raised to $1.20, while previously it stood at $0.97. The previous estimate for the fiscal year 2018 was $1.09, but now it has been raised to $1.32.

However, as far as the stocks are concerned, UBS has a neutral stance on it. Ms. Meyer asserts that better managed inventories, improved margins and positive comps, indeed pave the way for inflection of stocks; however, UBS wouldn’t be assessing the situation as it is right now. It would prefer getting past the creating hype and then determine whether the momentum would continue or not.

The total market capital owned by Express Inc. (NYSE:EXPR) presently is $1.30 billion. Its stock is being monitored by 17 analysts.  Whilst 16 have awarded it with a Hold rating, 9 have gone for a Buy rating.

Get Free Updates and Stock Alerts!

*We only send one email per week

Comments are closed.

Get Winning Stock Alerts!

Our track record speaks for itself! Our last 7 alerts have delivered combined gains in excess of 300% and there are no signs of slowing down. Join now before you miss out on our next big runner!

We will never sell or share your information.