Shares of Sequential 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%.
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:
We started the year off strong with solid results in the first quarter and several new organic growth initiatives underway. Going forward, our top priority is implementing new revenue initiatives across all of our brands, while maintaining a disciplined approach to expense management.
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.