Children's Place Q3 Results Top Estimates, Lifts FY Adj. EPS View; Stock Up

(RTTNews) - The Children's Place Inc. (PLCE) reported that its net income for the third-quarter of 2017 was $44.08 million or $2.44 per share, compared to $44.17 million, or $2.36 per share, the previous year. Comparable retail sales increased 5.1% in the third quarter of 2017. Both adjusted earnings per share and quarterly net sales topped analysts' expectations. The company raised its adjusted earnings per share outlook for fiscal 2017.

In the Wednesday's pre-market trade, PLCE is trading at $118.00, up $4.10 or 3.60%.

Adjusted net income for the third-quarter 2017 was $46.7 million, or $2.58 per share, compared to adjusted net income of $42.8 million, or $2.29 per share, in the third quarter last year. This $0.29 increase in adjusted net income per share includes a $0.03 benefit resulting from the new accounting rules for the income tax impact on share-based compensation. Analysts polled by Thomson Reuters expected the company to report earnings of $2.47 per share for the third-quarter. Analysts' estimates typically exclude special items.

Net sales increased 3.4% to $490.0 million in the third quarter of 2017. Wall Street expected revenues of $480.28 million for the third-quarter. Comparable retail sales increased 5.1% in the third quarter of 2017.

The Company expects adjusted net income per share in the fourth quarter of 2017 will be between $2.07 and $2.12. This compares to adjusted net income per share of $1.88 in the fourth quarter of 2016. This guidance assumes a low single digit increase in comparable retail sales. Analysts project fourth-quarter earnings of $2.12 per share.

The Company updated its outlook for fiscal 2017 and now expects adjusted net income per diluted share to be in the range of $7.46 to $7.51, inclusive of a $0.91 benefit resulting from new accounting rules for the income tax impact on share-based compensation. This compares to the Company's previous guidance for adjusted net income per diluted share of $7.23 to $7.33, inclusive of an $0.89 benefit resulting from new accounting rules for the income tax impact on share-based compensation. Analysts expect annual earnings of $7.36 per share.

Excluding the benefit from the new accounting rules, full year adjusted net income per share guidance is projected to increase 20% to 21% compared to adjusted net income per share of $5.43 last year.

Jane Elfers, President and Chief Executive Officer, said, "...... The Children's Place has a profitable business model which generates strong cash flow. Since 2009, we have returned over $863 million to shareholders through share repurchases and dividends."

The Board declared a quarterly cash dividend of $0.40 per share to be paid January 3, 2018 to shareholders of record at the close of business on December 13, 2017.