Why Francesca's Holdings (FRAN) Stock Is Down Today

NEW YORK (TheStreet) -- Francesca's Holdings (FRAN) stock is sliding on Tuesday after reporting a worse-than-expected first quarter and guiding for below-consensus results in its second quarter and full year. By late afternoon, shares had fallen 12.8% to $13.33. 

Over the three months to April, the company earned 20 cents a share, 2 cents below what analysts surveyed by Thomson Reuters expected. Revenue of $85.4 million missed estimates of $88.1 million, while comparable store sales slumped 7%. 

In its second quarter, management guides for net income of 24 cents to 29 cents a share and revenue between $98 million and $103 million. Analysts had expected 36 cents a share in net income and revenue of $104.3 million. 

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For its full year ending 2015, net income is expected between $1.05 and $1.17 a share, below estimates of $1.21 a share. Revenue between $387 million and $399 million fell short of analysts' consensus of $403.6 million. 

TheStreet Ratings team rates FRANCESCAS HOLDINGS CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate FRANCESCAS HOLDINGS CORP (FRAN) a HOLD. 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 revenue growth, 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 deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself."

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