While the market’s performance so far today is not exactly something to write home about, it is nonetheless a dramatic improvement from yesterday’s sharp swoon. One of the companies thriving in today’s market is Pier 1 Imports, Inc. (PIR).
Shares of the home furnishings retailer are up more than 7.5% Wednesday afternoon, which makes it a top-performing Zacks #1 Rank company.
According to recent comments from the company, PIR has emerged from the recession in a stronger position. For proof of this, you only need to go back 2 weeks to the company’s fiscal first-quarter report, which included a dramatic earnings per share surprise and double-digit same-store sales growth.
It wasn’t too long ago when you would be hard-pressed to find a company from the retail – home furnishings industry on the Zacks #1 Rank List. During the recession, scented candles and knick-knacks for the coffee table gave way to more pressing concerns. However, today there are 3 companies from that space, including PIR, on the list.
The other 2 names are Kirkland’s (KIRK) and Williams-Sonoma (WSM).
Fiscal First Quarter Report
Pier 1 Imports, which we currently rate as Outperform for the longer term, has enjoyed quite a turnaround of late, and its fiscal first-quarter report may be considered one of the more impressive developments.
As you can see from the chart above, the company was understandably in hot water in late 2008/early 2009. However, it has since beat expectations in 4 of the past 5 quarters.
The company announced 7 cents per share in its most recent report, which was 450% better than the Zacks Consensus Estimate at a loss of 2 cents. This was the first time in 6 years that PIR achieved first quarter operating income.
Total sales advanced nearly 9% to $306.3 million from $281.1 million. Perhaps more importantly, though, same-store sales jumped 14.3%. PIR boasted strong performances in all of its merchandise divisions and in all areas of the country.
For more on this impressive performance, don’t miss: Pier 1 Tops Expectations.
Earnings Estimates for Pier 1 Imports
Analysts were in heavy agreement on the fiscal-first quarter performance, sending earnings estimates for both this fiscal year and next sharply higher.
The Zacks Consensus Estimate for this fiscal year, ending February 2011, is 63 cents per share, marking a gain of 40% in 30 days. Out of 6 total estimates, five have been revised higher in that timeframe.
For the fiscal year ending February 2012, the Zacks Consensus Estimate of 70 cents is up nearly 15% in a month on 4 upward revisions out of 6 total. Furthermore, analysts currently expect year-over-year profit growth of about 11.1%.
