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 thesis.
What: Shares of Tuesday Morning Corporation (NASDAQ: TUES ) were looking brighter today, climbing as much as 21% on a strong second-quarter earnings report.
So what: The closeout retailer saw flat sales growth in the quarter with total revenue at $285.8 million, though same-store sales grew 3.1%, a promising sign as the company has been closing stores in an attempt to revamp the brand. As a result, adjusted net income improved from $0.37 to $0.45 per share, though that was a penny short of estimates at $0.46. Recently instated CEO Michael Rouleau credited "our experienced team with executing a disciplined program aimed at improving operations." He also said he expected "continued improvement" in the second half of the year.
Now what: Even though Tuesday Morning slightly missed bottom-line estimates, the result was not only an improvement from its total a year ago, but a much better performance than in recent quarters, when it posted losses well short of the analyst view. As Rouleau said, Tuesday Morning seems to be finally moving in the right direction, with comps improving as the company has made the strategic decision to exit underperforming categories. As the fourth quarter is the strongest of the year, analysts only expect profits of $0.07 per share, but I'd expect those projections to get a lift soon.
Get in the game
Millions of Americans have waited on the sidelines since the market meltdown in 2008 and 2009, too scared to invest and put their money at further risk. Yet those who've stayed out of the market have missed out on huge gains and put their financial futures in jeopardy. In our brand-new special report, "Your Essential Guide to Start Investing Today," The Motley Fool's personal finance experts show you why investing is so important and what you need to do to get started. Click here to get your copy today -- it's absolutely free.