That deal will see the two companies form an omnichannel platform focused on accelerated, long-term growth. It will do this via the acquisition and operation of brands. There are also plans for an intellectual property joint venture to expand the companies’ influence to new markets.
As part of this agreement, WHP Global is investing $25 million into Express. This will see it acquire 5.4 million newly-issued shares of EXPR stock for $4.60 each. That will give it a roughly 7.4% stake in the fashion company. It’s also a 253.8% premium from the stock’s closing price on Wednesday.
EXPR Stock Resists Poor Q3 Earnings
Express shares are soaring even after missing estimates for the third quarter of 2022. That includes an adjusted loss per share of 50 cents. That’s worse than the earnings of 19 cents per share reported in the same period of the year prior. It also missed analysts’ estimate of a loss of 29 cents per share.
Also not helping matters is the company’s revenue of $434.1 million. That’s another drop compared to the $472 million reported in the third quarter of 2021. It also comes in below Wall Street’s estimate of $451.77 million.
Investors will also note EXPR stock is seeing heavy trading today. That movement is positive with some 31 million shares on the move. For the record, its daily average trading volume is closer to 1.2 million shares.
EXPR stock is up 58.6% as of Thursday morning.
Investors seeking more recent stock market news are in luck!
InvestorPlace is home to all of the hottest stock market stories for Thursday! That includes what has shares of GameStop (NYSE:GME) stock in the news, this morning’s biggest pre-market stock movers and more. You can catch up on all of that at the links below!
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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.