NEW YORK (TheStreet) -- Shares of Express Inc. (EXPR - Get Report) closed higher by 1.14% to $16.90 on heavy trading volume on Tuesday afternoon, one day prior to the release of the retailer's fiscal 2015 second quarter earnings results.
Express is due to release its earnings results before the market open on Wednesday morning.
Analysts surveyed by Thomson Reuters are expecting the mall-based apparel and accessories chain to post a year over year increase in earnings per share and revenue for the most recent quarter.
Express has been forecast to report earnings of 16 cents per share on revenue of $504.8 million for the second quarter.
Last year, the company said it earned 8 cents per share on net sales of $481.4 million for the 2014 second quarter.
By the end of trading today, 3 million shares of Express had exchanged hands as compared to its average daily volume of 1.74 million shares.
Separately, TheStreet Ratings team rates EXPRESS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate EXPRESS INC (EXPR) 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 solid stock price performance, increase in net income and revenue growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 157.0% when compared to the same quarter one year prior, rising from $5.08 million to $13.06 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.5%. Since the same quarter one year prior, revenues slightly increased by 9.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- EXPRESS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EXPRESS INC reported lower earnings of $0.80 versus $1.38 in the prior year. This year, the market expects an improvement in earnings ($1.21 versus $0.80).
- EXPR's debt-to-equity ratio is very low at 0.12 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that EXPR's debt-to-equity ratio is low, the quick ratio, which is currently 0.53, displays a potential problem in covering short-term cash needs.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Specialty Retail industry and the overall market, EXPRESS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full analysis from the report here: EXPR Ratings Report