NEW YORK (TheStreet) -- Chico's FAS (CHS) - Get Report shares are surging by 9.25% to $11.93 on heavy trading volume Thursday morning, after the specialty retailer of women's apparel earlier this morning released better-than-expected fourth quarter 2015 results.
The company reported adjusted earnings of 5 cents a share while analysts anticipated Chico's to break even. Revenue of $627.4 million also beat Wall Street's forecasts of $625 million.
A year ago, the company earned 7 cents a share on revenue of $656.9 million.
Even though CEO Shelley Broader said the company was disappointed with the 4.5% year-over-year sales decline, better margins and lower inventories have helped the company.
"Additionally, our business generated significant cash flow during the fiscal year, which in combination with our healthy balance sheet, allowed us to return $334 million to our shareholders in the form of dividends and share repurchases," Broader added.
In the latest quarter, comparable sales fell by 3.2%.
Last year, the company said it would reduce capital spending, cut jobs and speed up store closures.
Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C.
The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: CHS