NEW YORK (TheStreet) -- Shares of Vera Bradley (VRA) are down -5.47% to $23.87 after reporting that fiscal first quarter earnings decreased to $6.6 million from $9.2 million, down 29% from a year ago.
Earnings from continuing operations were 17 cents per share, compared to 23 cents per share last year.
On average, 10 analysts polled by Thomson Reuters expected the company to report profit of 13 cents per share.
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Vera Bradley lowered its guidance for the second quarter of fiscal 2015, saying net revenue should be in the range of $113 million to $120 million. The prior year's second quarter revenue was $125.4 million.
The company also lowered its net revenue guidance for fiscal 2015, in the range of $510 million to $530 million. The previous outlook given last March, projected net revenue to be in the range of $545 million to $565 million.
Separately, TheStreet Ratings team rates VERA BRADLEY INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate VERA BRADLEY INC (VRA) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- VRA 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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.44, which illustrates the ability to avoid short-term cash problems.
- Net operating cash flow has significantly increased by 81.22% to $53.02 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 62.40%.
- Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- The gross profit margin for VERA BRADLEY INC is rather high; currently it is at 55.68%. Regardless of VRA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, VRA's net profit margin of 12.34% compares favorably to the industry average.
- You can view the full analysis from the report here: VRA Ratings Report