NEW YORK (TheStreet) -- Pier 1 Imports Inc. (PIR) is scheduled to report its fiscal 2016 first quarter earnings results after the market close on Wednesday afternoon. Analysts are expecting the home furnishings and décor company to post a year-over-year decline in earnings and a rise in revenue for the most recent quarter.
The company has been forecast to report earnings of 8 cents per share on revenue of $434.53 million for the most recent quarter.
Last year Pier 1 Imports said it earned 16 cents per share on total sales of $419.1 million for the fiscal 2015 first quarter.
Shares of Pier 1 Imports closed lower by 0.74% to $12.15 on heavy volume on Tuesday afternoon.
By the close of trading today 3.33 million shares of Pier 1 Imports had exchanged hands as compared to its average daily volume of 2.47 million shares.
Separately, TheStreet Ratings team rates PIER 1 IMPORTS INC/DE as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate PIER 1 IMPORTS INC/DE (PIR) 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, attractive valuation levels and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.1%. Since the same quarter one year prior, revenues slightly increased by 5.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has increased to $111.90 million or 14.10% when compared to the same quarter last year. Despite an increase in cash flow, PIER 1 IMPORTS INC/DE's average is still marginally south of the industry average growth rate of 16.32%.
- Looking at the price performance of PIR's shares over the past 12 months, there is not much good news to report: the stock is down 29.63%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Specialty Retail industry average. The net income has decreased by 22.3% when compared to the same quarter one year ago, dropping from $42.59 million to $33.09 million.
- You can view the full analysis from the report here: PIR Ratings Report