NEW YORK (TheStreet) -- Lightinthebox (LITB) shares are up 9.47% to $6.21 on Friday after the global online retail company raised its third quarter revenue guidance to between $94 million and $96 million from its previous estimate of between $92 million and $94 million.
The new guidance represents a 38% - 41% increase in revenue over the same period last year and is a result of the "strategic plan" the company has been implementing over the last few quarters, Lightinthebox said.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
TheStreet Ratings team rates LIGHTINTHEBOX HLDG -ADR as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate LIGHTINTHEBOX HLDG -ADR (LITB) a SELL. This is driven by multiple weaknesses, 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 feeble growth in its earnings per share and deteriorating net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- LIGHTINTHEBOX HLDG -ADR has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. For the next year, the market is expecting a contraction of 193.8% in earnings (-$0.47 versus -$0.16).
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Internet & Catalog Retail industry. The net income has significantly decreased by 975.9% when compared to the same quarter one year ago, falling from $0.65 million to -$5.68 million.
- 40.08% is the gross profit margin for LIGHTINTHEBOX HLDG -ADR which we consider to be strong. Regardless of LITB'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 -6.32% trails the industry average.
- Compared to other companies in the Internet & Catalog Retail industry and the overall market, LIGHTINTHEBOX HLDG -ADR's return on equity significantly trails that of both the industry average and the S&P 500.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 49.52%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1200.00% compared to the year-earlier quarter.
- You can view the full analysis from the report here: LITB Ratings Report