Sears Holdings Earnings: Don't Be Fooled by Management's Optimism

On Thursday, Sears Holdings (NASDAQ: SHLD) released its second-quarter earnings report. At the top of the earnings release, management touted a "Significant Improvement in Net Loss and Adjusted EBITDA [earnings before interest, taxes, depreciation, and amortization] for the Second Quarter."

Sears Holdings stock surged as much as 12% on Thursday morning in response. However, it gave up all of those gains by the end of the day. Indeed, this earnings report wasn't much better than the company's dreadful first-quarter report -- which ironically also sparked a massive but short-lived rally for Sears stock.