NEW YORK (TheStreet) -- Lululemon Athletica (LULU) stock is rising by 6.50% to $58.29 in after-hours trading on Monday, after the company increased its fiscal 2015 fourth quarter earnings and revenue guidance this afternoon.
The athletic apparel retailer now expects fourth quarter revenue to range between $690 million and $695 million, compared to the previously expected range between $670 million and $685 million.
Diluted earnings should range between 78 cents per share and 80 cents per share for the quarter, up from the prior forecast for a range between 75 cents per share and 78 cents per share, according to a statement.
Analysts have forecast for earnings of 77 cents per share on revenue of $679 million for the quarter.
"We had a very successful holiday season driven by strong execution in stores and online during the key holiday weeks," CEO Laurent Potdevin said in a statement. "Sales for the fourth quarter are exceeding expectations and gross margin rates and expenses remain in line with prior guidance."
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate LULULEMON ATHLETICA INC as a Hold with a ratings score of C+. 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, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and feeble growth in the company's earnings per share.