Why Movado's Shares Soared
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of watch expert Movado Group (NYS: MOV) were ticking higher today, gaining as much as 12% in intraday trading after the company provided preliminary first-quarter results.
So what: In short, Movado had this to say today: "We're doing more business than we thought and we're going to make even more profit for shareholders." News worth celebrating? You bet.
For the first quarter, the company now expects that it will earn between $0.24 and $0.26 per share -- in part thanks to a 15% year-over-year bump in revenue, but also because of a much lower tax rate versus the prior year. On average, the two Wall Street analysts following the company estimated $0.06 for the quarter.
Now what: Expectations were also increased for the full year. Revenue is seen increasing 9% to roughly $508 million, while EPS is expected to clock in at $1.15. Both numbers were above the estimates out of Wall Street.
In the company's press release, CEO Efraim Grinberg used the word "momentum" in lauding the company's better-than-anticipated first quarter. It's a good word to use as the company has turned around from the losses it was reporting in recent years. Investors now need to hope that management can keep that momentum going.
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