Sportsman's Warehouse (SPWH) Stock Closed Up Ahead of Q1 Results
NEW YORK (TheStreet) -- Shares of Sportsman's Warehouse Holdings (SPWH) - Get Report closed higher by 0.5% to $10.01 on heavy trading volume on Monday, ahead of the company's 2016 first quarter results due out after tomorrow's closing bell.
Wall Street is expecting the Midvale, UT-based outdoor sporting goods retailer to post a loss of 2 cents per share on revenue of $158.5 million.
During the same quarter last year, Sportsman's reported an adjusted loss of 3 cents per diluted share on revenue of $144.5 million.
MKM Partners maintained its "buy" rating and $13 price target on the stock ahead of the results.
"We are cognizant of the challenges facing the sporting goods industry, including the hunt segment, which Dick's Sporting Goods (DKS) noted was weak in the first quarter but saw some sequential improvement," the firm wrote in a note to investors earlier today.
But MKM has been surprised by the sharp pullback in Sportsman's shares, much of which occurred since April 12 after the announcement of a 5 million, now upsized to 6 million, secondary share offering.
"While we expect soft 1Q16 results, in part because of some pull-forward of gun sales, we believe the long-term, 20% EPS growth story is intact and recommend buying the stock on weakness," the firm added.
About 1.04 million of the company's shares were traded so far today vs. its average volume of 638,240 shares per day.
