Pacific Sunwear Profit Surges; Shares Jump 12%

(RTTNews) - Pacific Sunwear of California Inc. (PSUN), a specialty retailer focused on teens, Thursday said its third quarter profit surged from a year ago, due to a hefty gain from derivatives, offsetting a decline in revenue owing partly to a calendar shift. Excluding one-time gains, the company reported a loss for the quarter that matched analysts' expectations while revenues trumped estimates.

The announcement impressed investors and Pacific Sunwear shares climbed 12 percent in after-hours on the Nasdaq.

The Anaheim, California-based company's third-quarter profit jumped to $17.2 million or $0.23 per share from $0.9 million or $0.01 per share last year.

Results for the recent quarter included a non-cash derivative gain of $23.4 million or $0.31 per share, compared with $5.6 million or $0.08 per share last year.

Adjusted loss from continuing operations were $0.05 per share, wider than $0.02 per share a year ago. On average, 13 analysts polled by Thomson Reuters expected a loss of $0.05 per share. Analysts' estimates typically exclude special items.

Pacific Sunwear's revenues for the third quarter dropped to $206.6 million from $215.5 million last year. Analysts expected revenues of $205.01 million.

The company said that the 53rd week retail calendar shift resulted in a decline in sales of about $11 million for the recent quarter.

Comparable store sales for the quarter increased 1 percent.

The company ended the quarter with 635 stores compared to 722 stores a year ago.

Looking forward to the fourth quarter, the company expects adjusted loss of $0.17 to $0.12 per share, and revenues of $216 million to $225 million. Analysts currently expects a loss of $0.11 per share on revenues of $218.67 million.

PSUN closed Thursday's trading at $2.76, down $0.04 or 1.43%, on the Nasdaq. The stock, however surged $0.33 or 11.96%, in after hours trade.