91 days have passed by since the last earnings report for Party City Holdco Inc. (NYSE:PRTY) and the new quarterly results look set to arrive today. The shares of PRTY at the moment are trading at a volume of 2.12 million, which compares with its normal daily standard volume of 1880179 shares. This has led to the shares of the company declining by -1.22%, currently exchanging hands at $5.69 a share. PRTY stock has been up by $10.99 (-65.89%) ever since it reached its 52-week high of $16.68 back in August 09, 2018. It has progressed below its 50-day moving average of $6.54 and is down -10.82% over the past week. The stock has retreated -20.7% since the last one arrived so the question here is that will the downbeat trend in that time frame continue leading up to its next earnings release, or is the PRTY share price due for a breakout?
Party City Holdco Inc. (PRTY) Forecasts And Latest Quarter Earnings
Ahead of their fiscal second-quarter to be released on Thursday, Aug 08, 2019, 8 analysts who are covering the company are estimating that it will record a profit of $0.36 per share, with analysts having different outlooks from $0.32 to $0.4. The current agreed outlook, when compared to the profit recorded last year, is at $0.4 a share, thus a decrease of -10% is expected. The profit view for a complete financial year for Party City Holdco Inc. is expected to be around $1.65 in current year, a decline of nearly 2.48% from last year which was $1.61.
Let’s now look at their sales section, PRTY’s revenue is estimated to be $561.01M, a figure which is more than the $561.01M recorded for Q2 last year. Their sequential sales though are expected to grow by 11.5% from their Q1’s sales which were $513.12M. Their full-year outlook is pegged at $2.48B, implying that there would be an increase of 2.06% over the $2.43B they recorded last year in revenue. Party City Holdco Inc. is projected to get sales lifted by 2.02% in the next quarter, with a revenue target of $2.53B.
Analyzing The Earnings History Of Party City Holdco Inc. (NYSE:PRTY)
In the past few years, the PRTY stock has been known to miss the Wall Street’s earnings projection. The company missed 25% of the time, according to the data pulled on their earnings, was able to meet predictions on 4 occasions and topped expectations 5 times. Looking at the past trend, the price of Party City Holdco Inc. shares had risen following the release of their earnings in 11 of the last 17 quarters.
Looking back, here is how Party City Holdco Inc. (PRTY) stock reacted to earnings misses and beats. It gave investors reason to cast doubts with the price going down after 2 of the last four earnings reports. The shares of Party City Holdco Inc. recorded 10.88%, -15.43%, -0.2% and 0.95%, respectively, on the first day of past earnings releases. After a week of earnings reports, the changes were 12.67%, -26.48%, 14.47% and -4.44%. Their post-earnings price movements have resulted in an average decrease of -0.95% and an average decrease of -0.95% in Party City Holdco Inc. on next day and 7th day, sequentially. PRTY’s one month stock performance led to its shares declining by -18.25% with a return of -63.17% witnessed over the last 52 weeks.
The higher number of analysts at Reuters has assigned a buy or better ratings (4) on the Party City Holdco Inc. stock, while 3 of them have a rating of a Hold with the 11-year target price suggested by the analysts standing at $13.75. This price target implies potential upside of 141.65 percent over the next 12 months based on the current share price.
Party City Holdco Inc. (PRTY) Post Earnings Announcement Drift (PEAD)
Back on May 09, 2019, Party City Holdco Inc. (NYSE:PRTY) released its Q1 results, in which it recorded EPS of $0.01 that was in line with consensus estimates of $0.01. After the earnings were reported, the price of PRTY stock kicked off the session at $7.9 and remained in a range of $8.41 to $8.48 on the first day. The shares were priced at $8.05 at the close with a total volume of shares being 5221647.
On February 28, 2019, the Q4 earnings report was disclosed with EPS of $1.08. This was below the estimation of $1.09 per share. The stock price range of PRTY was between $10.81 and $11.25 on the first-day post announcement, after opening the day at $10.19. The session came to close at $10.41 and there was a total volume of 4412748 shares.
November 08, 2018 was the day when its Q3 results were unveiled. The earnings came in at $0.08, missing the projected $0.18 per share. The very next day, PRTY stock opened at $8.24 while staying in a range of $9.15 to $10.25. At the end, it moved to $10 a total volume of shares been 6496611.
In the year-ago Q2 earnings on August 09, 2018, the company saw profit per share of $0.4. That was better than the $0.39 analysts had expected. Party City Holdco Inc. share price started at $15.8 on the first full trading day post-earning and then exchanged hands between $16.35 and $16.68 throughout the session. The closing price of $15.9 came on the back of 2137573 shares in volume.