True Religion jumps despite missing estimates
True Religion Apparel Inc.’s (Nasdaq: TRLG) stock got a boost in after-hours trading today despite missing first quarter estimates as the company reiterated its 2007 guidance.
For the three months ended March 31, the Vernon, Calif.-based apparel firm posted non-GAAP, or adjusted, net income of $5.6 million, or $0.24 per diluted share, on revenue of $36.1 million.
Nine analysts polled by Thomson First Call had expected earnings per share of $0.28 on revenue of $39.9 million.
The firm also reiterated its previously reported guidance for 2007 of EPS between $1.24 and $1.27 on revenue of $167 million.
Nine analysts polled by Thomson First Call had estimated EPS of $1.25 on revenue of $167.1 million.
As of 5:40 PM ET, shares were up $1.01, or 6.5%, to $16.66 in extended hours trading. In today’s regular session the stock closed up $0.54, or 3.6%, at $15.65. It has traded between $14.65 (on Nov. 29) and $23.88 (on Oct. 16) in the past year.
Volume was heavy – with more than 653,000 shares changing hands, compared with an average three-month daily volume of 307,240 shares.
The company said its consumer direct business, which includes e-commerce and its growing branded retail rollout, jumped to $4.1 million versus $677,000 in the first quarter of 2006.
The company recorded $2.4 million in unusual charges in the quarter, which saw a change in the accounting method for recognizing restricted stock grant expenses as well as costs associated with the build-up in the company's design and finance departments and the departure of a former vice president of women's design and a former CFO.
