Children’s Place (NASDAQ:PLCE) Releases Earnings Results, Misses Expectations By $0.23 EPS

Posted by Adam Dyson on May 26th, 2023

Children’s Place (NASDAQ:PLCE – Get Rating) issued its quarterly earnings results on Wednesday. The company reported ($2.00) EPS for the quarter, missing analysts’ consensus estimates of ($1.77) by ($0.23), Briefing.com reports. The firm had revenue of $321.60 million for the quarter, compared to analysts’ expectations of $338.46 million. Children’s Place had a negative return on equity of 23.70% and a negative net margin of 2.99%. The business’s quarterly revenue was down 11.3% compared to the same quarter last year. During the same quarter last year, the firm earned $1.05 earnings per share. Children’s Place updated its Q2 guidance to ($2.20)-($2.15) EPS and its FY24 guidance to $1.00-1.50 EPS.

Children’s Place Price Performance

Children’s Place stock opened at $17.34 on Friday. Children’s Place has a 52-week low of $16.88 and a 52-week high of $57.00. The company has a quick ratio of 0.18, a current ratio of 0.84 and a debt-to-equity ratio of 0.40. The firm has a market capitalization of $215.02 million, a P/E ratio of -4.15 and a beta of 1.97. The firm has a fifty day moving average of $31.56 and a 200-day moving average of $36.75.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in PLCE. Advisor Group Holdings Inc. boosted its stake in Children’s Place by 426.3% during the 1st quarter. Advisor Group Holdings Inc. now owns 5,505 shares of the company’s stock valued at $271,000 after acquiring an additional 4,459 shares during the last quarter. JPMorgan Chase & Co. lifted its position in shares of Children’s Place by 35.3% in the 1st quarter. JPMorgan Chase & Co. now owns 44,948 shares of the company’s stock worth $2,216,000 after buying an additional 11,734 shares during the last quarter. American Century Companies Inc. lifted its position in shares of Children’s Place by 72.5% in the 1st quarter. American Century Companies Inc. now owns 47,008 shares of the company’s stock worth $2,317,000 after buying an additional 19,761 shares during the last quarter. MetLife Investment Management LLC lifted its position in shares of Children’s Place by 54.9% in the 1st quarter. MetLife Investment Management LLC now owns 8,398 shares of the company’s stock worth $414,000 after buying an additional 2,976 shares during the last quarter. Finally, Rhumbline Advisers lifted its position in shares of Children’s Place by 8.2% in the 1st quarter. Rhumbline Advisers now owns 34,539 shares of the company’s stock worth $1,703,000 after buying an additional 2,618 shares during the last quarter. 98.73% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of brokerages have recently commented on PLCE. Telsey Advisory Group lowered their price target on shares of Children’s Place from $46.00 to $44.00 and set a “market perform” rating for the company in a report on Friday, March 17th. StockNews.com began coverage on shares of Children’s Place in a report on Thursday, May 18th. They set a “hold” rating for the company. TheStreet downgraded shares of Children’s Place from a “c” rating to a “d+” rating in a report on Thursday, March 16th. UBS Group dropped their price target on shares of Children’s Place from $40.00 to $20.00 in a research report on Thursday. Finally, B. Riley initiated coverage on shares of Children’s Place in a research report on Thursday, May 11th. They set a “buy” rating and a $50.00 price target for the company. Three analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Hold” and an average target price of $41.00.

About Children’s Place

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The Children’s Place, Inc engages in the provision of apparel, footwear, accessories, and other items for children. The firm also designs contracts to manufacture and sell fashionable and value-priced merchandise under the brand names of The Children’s Place, Baby Place, and Gymboree. It operates through The Children’s Place U.S.