Why L Brands Stock Rallied 18% Out of the Gate Today
Shares of retailer L Brands (NYSE: LB) rose just shy of 18% at one point in the first half hour of trading on Thursday. Although the stock didn't hold on to all of its initial gains, it was still higher by 14% at roughly 10 a.m. EST. The big news was the company's after-the-close earnings release on Wednesday, which was better reading than Wall Street had expected.
The big-picture story was that revenue in the third quarter rose 14% year over year, with a huge 28% increase in comparable-store sales. Adjusted earnings came in at $1.13 per share, up from $0.02 a year ago. Analysts had been expecting earnings of just $0.09 per share, and the retailer beat revenue expectations by roughly 15%. So not only was it a good quarter, but L Brands also handily bested Wall Street projections. It makes sense that the stock rallied on the news.
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Source Fool.com
