Kirkland's (KIRK) Stock Plummets on Earnings Miss

Kirkland's (KIRK) stock is falling in late morning trading on Thursday, after the home decor company's 2015 third quarter earnings results missed analysts' expectations.
By Amanda Albright ,

NEW YORK (TheStreet) -- Kirkland's (KIRK) - Get Report stock is plunging by 28.02% to $14.59 on heavy trading volume on Thursday morning, after the company's 2015 third quarter earnings results missed analysts' expectations. 

Before the market open on Thursday, the Brentwood, TN-based home decor retailer reported a loss of 2 cents per share for the quarter. Revenue increased by 10.3% year over year to $129.2 million.

Analysts surveyed by Zacks Investment Research were expecting the company to report earnings of 4 cents per share on revenue of $129.2 million for the most recent quarter.

"While our fall seasonal merchandise performed well and e-commerce revenues exceeded our expectations, we were disappointed with our third quarter results," CEO Mike Madden said in a statement. "Comparable sales were impacted by soft traffic including weakness in Texas, where we have our highest concentration of stores."

Additionally, the company lowered its 2015 earnings outlook to 89 cents per share to 96 cents per share, compared to its previous earnings estimate of $1.16 per share to $1.23 per share. 

So far today, 1.36 million shares of Kirkland's have traded, versus its 30-day average of about 151,000 shares. 

Separately, TheStreet Ratings team rates KIRKLAND'S INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

We rate KIRKLAND'S INC (KIRK) a BUY. This is driven by a number of 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

You can view the full analysis from the report here: KIRK

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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