NEW YORK (TheStreet) -- Shares of Caleres (CAL) - Get Report are jumping by 15.88% to $25.17 on heavy trading volume Friday afternoon, as the company reported weaker-than-expected results for the 2016 first quarter, but provided upbeat revenue guidance for 2016.
After yesterday's closing bell, the St. Louis-based footwear retailer said it sees earnings per share between $2 and $2.10 on revenue of $2.6 billion to $2.62 billion.
Analysts are modeling earnings of $2.09 per share on revenue of $2.66 billion.
For the first quarter, the owner of Famous Footwear posted earnings of 41 cents per share, while analysts were expecting earnings of 43 cents per share.
Revenue for the quarter was $584.7 million, below analysts' estimates of $614.3 million.
"Despite softness in the overall market, we delivered solid sales at Famous Footwear and improved gross margin at Brand Portfolio," CEO Diane Sullivan said in a statement.
"We also invested in both businesses, reduced our inventory position and continued to drive omni-channel sales, while maintaining our rock-solid balance sheet," she added.
Jefferies lowered its price target to $24 from $30 and maintained its "hold" rating on the stock following the results.
"While CAL's headline EPS might appear underwhelming, the miss vs cons was largely due to the exit of some low-margin categories and planned investment in new businesses," the firm wrote in a note to investors.
"While the company wasn't immune to the tough retail backdrop (slow April and start to 2Q), FY guidance was maintained, which we view positively, and as a testament to the flexibility of CAL's model," Jefferies said.
Additionally, Sterne Agee reiterated its "buy" rating and $30 price target on the stock after earnings and said the business is being well-managed.
About 2.26 million of the company's shares were traded so far today vs. its average volume of 317,460 shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B- on the stock.
The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures.
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: CAL