Shoe Carnival (NASDAQ:SCVL) Shares Gap Up on Strong 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 after the company announced better than expected quarterly earnings. 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.

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

Shoe Carnival Announces Dividend

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

Wall Street Analysts Forecast Growth

Several research analysts have recently weighed in on SCVL shares. Wall Street Zen cut shares of Shoe Carnival from a "hold" rating to a "sell" rating in a research report on Saturday, August 30th. Zacks Research lowered shares of Shoe Carnival from a "hold" rating to a "strong sell" rating in a research note on Tuesday, August 26th. Finally, Seaport Res Ptn downgraded Shoe Carnival from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 26th. One investment analyst has rated the stock with a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, Shoe Carnival has a consensus rating of "Reduce".

Institutional Investors Weigh In On Shoe Carnival

Several hedge funds have recently modified their holdings of the stock. First Horizon Advisors Inc. lifted its holdings in Shoe Carnival by 33.8% in the second quarter. First Horizon Advisors Inc. now owns 1,923 shares of the company's stock valued at $36,000 after acquiring an additional 486 shares during the period. North Star Investment Management Corp. lifted its stake in shares of Shoe Carnival by 1.4% in the 1st quarter. North Star Investment Management Corp. now owns 55,892 shares of the company's stock valued at $1,229,000 after purchasing an additional 750 shares in the last quarter. State of Alaska Department of Revenue lifted its stake in shares of Shoe Carnival by 8.0% in the 2nd quarter. State of Alaska Department of Revenue now owns 10,567 shares of the company's stock valued at $196,000 after purchasing an additional 779 shares in the last quarter. Comerica Bank lifted its stake in shares of Shoe Carnival by 6.7% in the 1st quarter. Comerica Bank now owns 14,835 shares of the company's stock valued at $326,000 after purchasing an additional 935 shares in the last quarter. Finally, Price T Rowe Associates Inc. MD lifted its stake in shares of Shoe Carnival by 17.0% in the 4th quarter. Price T Rowe Associates Inc. MD now owns 6,795 shares of the company's stock valued at $225,000 after purchasing an additional 987 shares in the last quarter. 66.05% of the stock is owned by institutional investors and hedge funds.

Shoe Carnival Trading Down 3.1%

The firm has a market capitalization of $643.47 million, a price-to-earnings ratio of 10.37 and a beta of 1.35. The firm has a 50 day moving average price of $21.33 and a two-hundred day moving average price of $20.39.

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.