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Shares ofSequential Brands Group Inc(NASDAQ: SQBG) were surging today after the fashion-label owner delivered a better-than-expected first-quarter earnings report.
As of 11:00 a.m. EDT, the stock was up 16.8%.
Image source: Sequential Brands.
The parent of Martha Stewart and other fashion and lifestyle brands said revenue increased 16% to $39.4 million, breezing past analyst estimates at $37 million, while adjusted earnings per share increased from $0.04 to $0.09. That easily topped estimates at $0.03 as well.
CEO Karen Murray said:
Separately, the company also announced a multiyear partnership between the Martha Stewart brand and QVC, which includes appearances by Stewart for her to promote her beauty and fashion products.
Management reiterated its full-year guidance with revenue of $170 million to $175 million and $98 million to $102 million in adjusted EBITDA. However, the company raised its adjusted earnings per share guidance from a previous range of $0.32-$0.37 to $0.37-$0.41.
That is still below analyst expectations at $0.49 a share, but that guidance may be conservative considering the company refused to raise its revenue forecast. Even so, after the strong earnings and revenue beat, the stock deserves a boost.
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