NEW YORK (TheStreet) -- Shares of EVINE Live (EVLV) were falling 38.9% to $3.44 on heavy trading volume Wednesday after the cable shopping company missed analysts' estimates for earnings and revenue in the first quarter.
EVINE Live reported a loss of 4 cents a share for the first quarter, below analysts' estimates of a profit of 3 cents a share. Revenue fell 0.8% year over year to $158.5 million for the quarter, missing analysts' estimates of $164.56 million for the quarter.
The company said it expects sales to be relatively flat in the second and third quarters, followed by sales growth in the fourth quarter as strategic changes are made.
"While we hoped to deliver top line growth of at least 3%, several factors including a lower than ideal average selling price in Watches, discounting excess textiles inventory on-air and lower shipping revenues worked against us," CEO Mark Bozek said. "These factors also contributed to the decrease in our adjusted EBITDA to $2 million."
About 1.6 million shares of EVINE Live EVLV were traded by 10:24 a.m. Wednesday, above the company's average trading volume of about 221,000 shares a day.
TheStreet Ratings team rates EVINE LIVE INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate EVINE LIVE INC (EVLV) a SELL. This is driven by a few notable 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 weak operating cash flow and poor profit margins."
You can view the full analysis from the report here: EVLV Ratings Report