Party City (NYSE:PRTY) stock isn’t doing so hot on Monday after the company revealed earnings results for its first quarter of 2022.
Starting off the bad news for PRTY stock is the company’s adjusted earnings per share of -22 cents. That’s a miss next to Wall Street’s estimate of -12 cents per share. Adding into that is it being a wider loss than the -5 cents per share reported in Q1 2021.
The damage of PRTY stock continues with the retailer reporting revenue of $433 million during the period. That’s below the $435.8 million that analysts were looking for. It also only represents a 1.4% increase in revenue year-over-year.
Brad Weston, CEO of Party City, doesn’t paint a positive picture in the most recent PRTY earnings report.
“As we look to the remainder of 2022, we expect supply chain and inflationary headwinds to continue, which is reflected in our updated outlook. While we navigate this near-term turbulence in costs, we are being very thoughtful with our mitigating actions on the pricing front, along with delivering an improved customer experience.”
Party City’s outlook for the full year of 2022 includes revenue ranging from $2.225 billion to $2.3 billion. To put that in perspective, Wall Street is estimating revenue of $2.3 billion for the year.
PRTY stock is also experiencing heavy trading following its earnings report today. This has some 20 million shares of the stock on the move as of this writing. That’s a massive surge compared to its daily average trading volume of about 3.9 million shares.
PRTY stock is down 56.5% as of Monday afternoon and is down 77.9% since the start of the year.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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