SFIX Stock: 5 Reasons Why Stitch Fix Is Making a Big Move Higher Today

Shares of Stich Fix (NASDAQ:SFIX) stock are taking off on Tuesday morning after the company reported strong earnings for the third quarter of fiscal year 2021 on Monday evening.

Homepage of StitchFix website on the display of PC
Source: Sharaf Maksumov / Shutterstock.com

This had the firm reporting revenue of $535.59 million beat Wall Street expectations of $511 million for the quarter. Also, diluted losses per share of 18 cents beat out analysts estimates of a 27-cent loss for the period.

Furthermore, here are a few other important things to know about the SFIX stock earnings report.

  • Adjusted per-share losses were 45% better than a loss of 33 cents during Q3 2020.
  • Revenue for the quarter comes in 44% higher year-over-year (YoY), compared to $7.3 million in Q3 2020.
  • Operating loss of $24.22 million was an improvement of 47% from the prior-year loss of $46.06 million.
  • The Stitch Fix earnings report also includes a net loss of $18.85 million; that’s 44% better, compared to a loss of $33.9 million from Q3 2020.
  • Additionally, the firm said it ended the quarter with 4.1 million active clients — up 20% or 689,000 from a year earlier.

The SFIX stock earnings report also included some revenue guidance for the firm moving forward. In Q4, Stich Fix is looking for revenue between $540 million and $550 million — which would be 21.8% to 24% growth YoY. Also, the company is looking for adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) to come in between $15 million and $20 million for the period.

Moreover, the company also included outlook for all of fiscal year 2021 in its earnings report. This has Stich Fix hoping to have revenue between $2.07 billion and $2.08 billion — or 20.9% to 21.5% YoY growth. Also, adjusted EBITDA is expected to be between $25 million and $30 million for the year.

SFIX stock was up 12.5% as of Tuesday morning.

On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article. 

Nick Clarkson is a web editor at InvestorPlace.

Article printed from InvestorPlace Media, https://investorplace.com/2021/06/sfix-stock-5-reasons-why-stitch-fix-is-making-a-big-move-higher-today/.

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