Shoe Carnival (NASDAQ:SCVL) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• Shoe Carnival shares jumped from a close of $21.53 to an opening of $25.00 after reporting quarterly earnings of $0.70 per share, surpassing estimates of $0.61.
• The company also declared a $0.15 per share dividend, equating to an annual yield of 2.5% and a dividend payout ratio of 25.10%.
• Despite the positive earnings report, analysts have downgraded Shoe Carnival's stock, with ratings ranging from "hold" to "sell," indicating mixed sentiments about its future performance.

Shares of Shoe Carnival, Inc. (NASDAQ:SCVL - Get Free Report) gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $21.53, but opened at $25.00. Shoe Carnival shares last traded at $24.92, with a volume of 388,383 shares trading hands.

The company reported $0.70 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.61 by $0.09. The company had revenue of $306.39 million for the quarter, compared to analyst estimates of $318.31 million. Shoe Carnival had a net margin of 5.41% and a return on equity of 9.65%. The firm's quarterly revenue was down 7.9% on a year-over-year basis. During the same period in the prior year, the business earned $0.83 EPS. Shoe Carnival has set its FY 2025 guidance at 1.700-2.10 EPS.

Shoe Carnival Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Monday, July 21st. Shareholders of record on Monday, July 7th were issued a dividend of $0.15 per share. The ex-dividend date was Monday, July 7th. This represents a $0.60 dividend on an annualized basis and a yield of 2.5%. Shoe Carnival's dividend payout ratio is 26.43%.

Analysts Set New Price Targets

A number of analysts have weighed in on the company. Seaport Res Ptn cut Shoe Carnival from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 26th. Wall Street Zen cut Shoe Carnival from a "hold" rating to a "sell" rating in a research note on Saturday, August 30th. Finally, Zacks Research cut Shoe Carnival from a "hold" rating to a "strong sell" rating in a research note on Tuesday, August 26th. One analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Reduce".

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the stock. Public Sector Pension Investment Board grew its position in shares of Shoe Carnival by 7.4% in the 2nd quarter. Public Sector Pension Investment Board now owns 60,134 shares of the company's stock valued at $1,125,000 after buying an additional 4,135 shares during the last quarter. CANADA LIFE ASSURANCE Co grew its position in Shoe Carnival by 20.1% during the 2nd quarter. CANADA LIFE ASSURANCE Co now owns 15,959 shares of the company's stock worth $298,000 after purchasing an additional 2,673 shares during the last quarter. Tower Research Capital LLC TRC grew its position in Shoe Carnival by 972.6% during the 2nd quarter. Tower Research Capital LLC TRC now owns 28,146 shares of the company's stock worth $527,000 after purchasing an additional 25,522 shares during the last quarter. Wasatch Advisors LP grew its position in Shoe Carnival by 37.9% during the 2nd quarter. Wasatch Advisors LP now owns 366,653 shares of the company's stock worth $6,860,000 after purchasing an additional 100,832 shares during the last quarter. Finally, Snowden Capital Advisors LLC grew its position in Shoe Carnival by 38.2% during the 2nd quarter. Snowden Capital Advisors LLC now owns 18,728 shares of the company's stock worth $350,000 after purchasing an additional 5,179 shares during the last quarter. 66.05% of the stock is owned by hedge funds and other institutional investors.

Shoe Carnival Stock Performance

The company has a market capitalization of $664.09 million, a PE ratio of 10.70 and a beta of 1.35. The company's 50-day simple moving average is $21.21 and its 200-day simple moving average is $20.37.

Shoe Carnival Company Profile

Shoe Carnival, Inc, together with its subsidiaries, operates as a family footwear retailer in the United States. The company offers range of dress, casual, work, and athletic shoes, as well as sandals and boots for men, women, and children; and various accessories. The company also operates stores, and sells its products through online shopping at shoecarnival.com, as well as through mobile app.