Why Aeropostale (ARO) Stock Is Tumbling After the Bell

NEW YORK (TheStreet) -- Aeropostale (ARO) stock is tumbling in post-market trading after guiding for a wider net loss in its second quarter than analysts expected. After the bell, shares had dropped 12.6% to $3.95. 

For its second quarter ending July, the teen retailer expects operating losses in the range of $49 million to $54 million, equivalent to net losses of 55 cents to 61 cents a share. Analysts surveyed by Thomson Reuters had expected net losses of 50 cents a share. 

In its first quarter, the company reported a net loss of 52 cents a share, far narrower than estimates of 72 cents a share. Revenue was down nearly 13% year over year to $395.9 million. 

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TheStreet Ratings team rates AEROPOSTALE INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate AEROPOSTALE INC (ARO) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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