Why Jos. A Bank's Shares Got Crushed

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Jos. A Bank Clothiers (Nasdaq: JOSB  ) fell as much as 10% today after reporting third-quarter earnings.

So what: The company reported an 11% jump in revenue to $232.9 million, which was in line with estimates, but the bottom line disappointed. Earnings per share fell 13% to $0.47 and fell well short of the $0.56 analysts expected.

Now what: Management blamed markdowns and promotions that drove the sales growth but hurt the bottom line in the quarter. They are cautious looking forward because of disruptions from Hurricane Sandy and because of the economy. I don't see any buy signs today and would wait for margins to improve before jumping into this stock.

Interested in more info on Jos. A Bank? Add it to your watchlist by clicking here.


Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 15, 2012, at 11:36 AM, Tuxster12345 wrote:

    I just did a quick back of the envelope discounted cash flow model valuation on the stock, and it appears to be undervalued.

Add your comment.

DocumentId: 2131316, ~/Articles/ArticleHandler.aspx, 7/29/2014 2:43:28 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

TREND TRACKER: Get Rich When the Web Goes Dark

It's time to say "goodbye" to your Internet! One bleeding-edge technology is about to put the World Wide Web to bed. And if you act right away, it could make you wildly rich. Experts are calling it the single largest business opportunity in the history of capitalism… The Economist is calling it "transformative"... but you'll probably just call it "how I made my millions." Big money is already on the move. Don't be too late to the party – find out the 1 stock to own when the Web goes dark.


Advertisement