If you are looking to trade EXPR stock, you may want to consider watching for unusual volatility after earnings. The gap move, average drift, and past earnings behavior are some of the key measures to use to evaluate EXPR stock. The gap move shows you how much the stock price has moved in either direction after earnings.
When it comes to timing the earnings announcement, EXPR stock prices typically trade higher before the announcement. This is because traders tend to buy the stock before the release of earnings. The Before Earnings column shows you how EXPR stock prices have traded in the past. This can be useful if you are looking to time your purchase to coincide with earnings. You can also analyze the volatility of EXPR stock by looking at the price of EXPR options before earnings announcement.
Last quarter, Express reported revenue of $465 million and an earnings per share of $.10. This was lower than expected, but it was still a positive number. However, in the second quarter of 2020, the company suffered a loss of $.01 per share, which fell short of analysts’ estimates. Further, in the same quarter as the company’s earnings report, the company recognized $197 million in impairments to its trademarks. It’s worth noting that the company also announced a change of CEO.
The company’s financial condition is a major concern. Although it has cash reserves of $50 million, it has $200 million in financial debts. The company uses two sources to meet its debt obligations, namely a term loan and a credit facility, and must pay off its term loans before repaying its credit facility.
The company is also vulnerable to competition in the apparel industry. Although it has no manufacturing facilities of its own, it buys products from more than 70 vendors and outsources its logistics. While this gives the company some bargaining power and better pricing due to volume, it faces a highly competitive and commoditized industry. Further, the company must pay rent for its leased stores.