The trading day has started, and Stein Mart Inc. (NASDAQ:SMRT) is already trading well above the 50% mark. Not bad, right? If you’re a retail investor, you should pay attention to the following.
What’s the Story, Stein Mart Inc.?
Considering the Stein Mart Inc. stock hit a new 52-week low every week starting from January 29 to February 8, I’m optimistic that today’s news is a bit of relief for investors of the Jacksonville, Florida-based company. On Thursday, Stein Mart Inc. witnessed its stock soar, just one day after posting its fourth quarter and fiscal 2017 results.
For those who don’t know, Stein Mart Inc. is involved in the retail sector, known for operating hundreds of department stores in the United States. The company was founded in 1902 and is currently lead by CEO Hunt Hawkins, who was appointed in January of last year. Currently, Stein Mart Inc. has a market cap of less than 1 billion.
What Happened This Week?
Mentioned briefly, the retail stock is trading up more than 50% today on the Nasdaq Exchange. This jump can be traced back to the company’s Q4 results that were posted yesterday. On Wednesday, Stein Mart Inc. posted the following results:
– Fourth-quarter operating income came in at $4.1 million compared to 2016’s operating loss of $8.1 million.
– Fourth-quarter profit expanded 380 basis points
– Adjusted operating income for Q4 came in at $7.3 million
– The Q4 net loss was $0.4 million ($0.01 per diluted share)
According to Hawkins, last year proved to be a “year of transition” for Stein Mart, adding that it helped position the company for the future. As for the company’s 2018 outlook, Stein Mart reportedly anticipates seeing a gross profit expansion of roughly 200 basis points. Further, the retail company forecasts interest expense to be $2 million higher.
It appears the market is just as pleased with the results and optimistic about the future as Stein Mart Inc. is. Why else would the company be trading up as much as it is? As of this writing, Stein Mart Inc. is trading at $1.43, which puts the stock up $0.66, or a whopping 83.12%. The stock opened the trading day at $1.14 and hit a high of $2.45 at one point during the session.
Check back in next week to see where the stock is sitting!
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