Why Shares of Fred's, Inc. Are Moving Higher Despite Quarterly Loss
Shares of Fred's, Inc. (NASDAQ: FRED) had a wild run Wednesday morning popping more than 20% at one point, before settling for a 10% gain in share price as of 11:45 a.m. EDT, after the company reported its second-quarter results and naming Heath Freeman to Chairman of the Board.
Fred's, an operation of more than 600 pharmacy and general merchandise stores, reported a loss of $29.5 million during its fiscal second quarter, but the results did manage to top analysts' estimates giving its stock price a small boost. Its top-line revenue checked in at $507.8 million, which narrowly topped estimates calling for $507.4 million and its adjusted earnings per share checked in at a loss of $0.15, $0.04 better than analysts' calling for a loss of $0.19 per share. It was also a positive sign for investors that comparable store sales posted the best result in the past year, declining only 0.3% during the second quarter compared to a more significant 2% during the prior year's second quarter.
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Source: Fool.com
