NEW YORK (TheStreet) -- DSW Inc (DSW - Get Report) stock is plummeting on Wednesday after the shoe retailer reported a first quarter below analysts' estimates. By market open, shares had tanked 23% to $25.05.
Over its April-ending quarter, the company earned 42 cents a share, 6 cents below what analysts surveyed by Thomson Reuters expected. Revenue edged 0.5% higher to $598.95 million but fell short of estimates of $622.33 million.
Additionally, management guided for full-year earnings between $1.45 and $1.60 a share, assuming low single-digit comparable sales declines. Analysts expected an average $1.90 a share.
TheStreet Ratings team rates DSW INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate DSW INC (DSW) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
- You can view the full analysis from the report here: DSW Ratings Report