Huntington Beach-based Quiksilver Inc. shares rose Friday afternoon following a brief dip in after-hours trading yesterday on an analyst upgrade that followed the action sports apparel maker and retailer's fourth-quarter and full-year results.
The company was up about 9% to a market value of $1.42 billion.
B. Riley & Co. upgraded the company's stock from "neutral" to "buy" and raised its price target from $6.50 to $10, citing headway in the company's turnaround plan and improvements in the company's earnings before interest, taxes, depreciation and amortization for the three months through October.
The company is in the midst of a turnaround plan that has seen brands sold or shuttered along with reductions in its product lines. The company more recently sold its Mervin Manufacturing snowboard business.
The upgrade came despite the company swinging to an adjusted loss of $7 million in the October quarter, in-line with consensus estimates. That compares to an $8 million profit in the year-ago period.
The company's net revenue was down 9% to $476 million during the October quarter, missing analyst estimates of $511.85 million.
The decline in net revenue stemmed from the company's expected decrease in revenue of its DC business, which fell 25% in constant currency to $47 million.
The company's two other core brands, Quiksilver and Roxy, had flat revenue in the quarter compared to a year earlier of $190 million and $137 million, respectively.
Quiksilver also reported full-year results after market close with net revenue down 6% in constant currency to $1.81 billion. The company reported a full-year loss of $38 million, compared to a $100,000 profit.