Shares of Anaheim-based Pacific Sunwear of California Inc. saw a small bounce Wednesday morning as analysts weighed in on the company’s latest quarterly earnings.
Pacific Sunwear, which slumped in overnight trading, closed up nearly 2% to a market value of $270 million.
The shares were down as much as 7% in afterhours trading Tuesday after the mall clothing retailer reported a loss for the recently ended quarter and warned of more red ink for the current quarter.
Early Wednesday, an analyst at Caris & Company upgraded her rating of Pacific Sunwear to “above average” from “average” with a price target of $4.
Pacific Sunwear’s shares now trade at about $4.
Mitch Kummetz of Milwaukee-based investment bank Robert W. Baird & Co. said Pacific Sunwear continues to “make progress with turning around this business.”
For the three months through July, Pacific Sunwear posted an adjusted loss of $14 million, flat from a year earlier and beating the $14.7 million expected on average by analysts.
Sales came in at $218 million, down 10% from a year earlier but topping the $213 million expected by Wall Street.
Pacific Sunwear runs 880 stores selling clothes inspired by surfing and skateboarding.
For the three months through October, Pacific Sunwear warned of a potentially larger loss than analysts had been expecting.
The company projected a loss of $5.7 million to $10.2 million, versus the $7 million analysts had been figuring on.
Analyst Kummetz called the forecast in line with expectations.
“A lot of work is still required for Pacific Sunwear to get back into the black,” he said.
Pacific Sunwear didn’t give a sales outlook. Analysts expect the company to see sales of $245 million in the current quarter, down 9% from a year earlier.
