Will Sears (SHLD) Stock be Helped by Earnings Beat?

NEW YORK (TheStreet) -- Shares of Sears Holdings Corp. (SHLD) were higher by 2.48% to $41.75 in pre-market trading on Monday morning, before turning lower by 1.34% to $40.19 at the start of regular trading, after the struggling department store retailer posted a narrower than expected earnings loss for the 2015 first quarter. Sears' revenue however, was lower than expected for the period.

The company said its adjusted net loss was $2 per diluted share, compared to a loss of $2.03 per diluted share for the 2014 first quarter.

Analysts polled by Thomson Reuters were looking for an earnings loss of $2.59 per share.

Revenue for the latest quarter declined to $5.9 billion from $7.9 billion for the same period last year.

Analysts had forecast for revenue of $6.08 billion.

"During the first quarter, we made significant progress in our transformation from a traditional, store-network based retail business model to a more asset-light, member-centric integrated retailer leveraging our Shop Your Way platform," company CEO Edward Lampert said in a statement.

"As our improved EBITDA results over the last three consecutive quarters demonstrate, we are successfully enhancing our margin rates and EBITDA performance as we become more efficient with our promotional programs and the use of Shop You Way to replace more traditional forms of marketing with targeted and personalized digital interactions," Lampert continued. 

Separately, TheStreet Ratings team rates SEARS HOLDINGS CORP as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate SEARS HOLDINGS CORP (SHLD) 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 weak operating cash flow and poor profit margins."

You can view the full analysis from the report here: SHLD Ratings Report

SHLD Chart SHLD data by YCharts

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