Rent the Runway (NASDAQ:RENT) stock is on the rise Thursday following the release of the shared designer closet company’s fourth-quarter earnings report.
Rent the Runway starts its Q4 earnings report with diluted EPS of -$7.02. That’s worse than the -$6.53 per share Wall Street was expecting. Even so, it’s an improvement over the -$8.07 from the same period of the year prior.
What’s really helping out RENT stock today is the company’s Q4 revenue of $75.8 million. That’s better than the $74.1 million that analysts were expecting during the quarter. It’s also a slight improvement over the $75.4 million reported in Q4 2022.
Rent the Runway Chief Financial Officer Sid Thacker said the following in the earnings report:
“We believe fiscal year 2024 will be a transformative year for Rent the Runway […] Over the past several years, we have reduced fixed costs significantly and made considerable progress towards building a more capital-light model. We expect these actions to result in free cash flow breakeven for fiscal year 2024.”
What’s Next for RENT Stock?
The first quarter of 2024 doesn’t look too bad for Rent the Runway with revenue guidance of between $73 million and $75 million. For comparison, Wall Street expects revenue of $74.95 million during that quarter.
The company’s guidance for the full year of 2024 also includes revenue growth of 1% to 6% year-over-year (YOY). That includes expectations for an Adjusted EBITDA Margin of 15% to 16%.
RENT stock is up 30.4% as of Thursday morning. That comes with some 350,000 shares traded. The company’s daily average trading volume is about 105,000 shares.
There are more stock market stories worth digging into below!
We have all of the hottest stock market news ready to go on Thursday! Among that is what has shares of Rallybio (NASDAQ:RLYB) stock up, the biggest pre-market stock movers this morning and more. All of that is available at the following links!
More Stock Market News for Thursday
- Why Is Rallybio (RLYB) Stock Up 93% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Thursday
- CPI Shocker: Why Are Gas Prices Going Up Again?
On Penny Stocks and Low-Volume Stocks: With only the rarest exceptions, InvestorPlace does not publish commentary about companies that have a market cap of less than $100 million or trade less than 100,000 shares each day. That’s because these “penny stocks” are frequently the playground for scam artists and market manipulators. If we ever do publish commentary on a low-volume stock that may be affected by our commentary, we demand that InvestorPlace.com’s writers disclose this fact and warn readers of the risks.
Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, William White did not hold (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.
