For the second quarter Joe's Jeans reported earnings of 1 cent a share, while analysts surveyed by Thomson Reuters expected a loss of 3 cents a share for the quarter. Revenue grew 56.1% from the year-ago quarter to $48.2 million, below analysts' expectations of $48.96 million in revenue.
Following the positive quarter analyst firm B. Riley upgraded Joe's Jeans to "buy" from "neutral," raising its price target to $1.70 from $1.30.
Must read: Warren Buffett's 25 Favorite Stocks
TheStreet Ratings team rates JOE'S JEANS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate JOE'S JEANS INC (JOEZ) a SELL. This is driven by a number of negative factors, 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 generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Currently the debt-to-equity ratio of 1.66 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. To add to this, JOEZ has a quick ratio of 0.69, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- You can view the full analysis from the report here: JOEZ Ratings Report