NEW YORK (TheStreet) -- Zumiez(ZUMZ) - Get Report  stock closed Thursday's trading session up 11.47% to $16.81 on heavy trading volume after the retailer of action-sports equipment lifted its earnings forecast for the current quarter. 

Sales for the fourth quarter are now estimated to be between $237 million to $239 million, higher than its previous outlook of $226 million to $231 million. 

Net income is projected to be between 45 cents a share and 47 cents a share, also an increase from 40 cents a share and 46 cents a share.  

Along with guidance, the company announced total net sales for December 2015. Sales decreased year-over-year 6.2% to $134.5 million from $143.4 million. 

Last month, the company said that sales would be impacted during the holiday season due to fashion misses, the Wall Street Journal said. 

At the close, more than 2.6 million shares had changed hands, above its average trading volume of about 490,000 shares. 

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. TheStreet Ratings has this to say about the recommendation:

We rate ZUMIEZ INC as a Hold with a ratings score of C. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, 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 feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • ZUMZ has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.75 is somewhat weak and could be cause for future problems.
  • 37.97% is the gross profit margin for ZUMIEZ INC which we consider to be strong. Regardless of ZUMZ's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 4.72% trails the industry average.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Specialty Retail industry and the overall market, ZUMIEZ INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has significantly decreased to -$0.50 million or 112.78% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • You can view the full analysis from the report here: ZUMZ