Sears finally managed to beat consensus estimates, after posting terrible numbers for what seems like 2 years.
Sears Holdings Corp (SHLD.O) forecast quarterly profit above Wall Street estimates on Thursday, sending its shares up nearly 18 percent.
The company, controlled by hedge fund manager Edward Lampert, forecast earnings of $2.44 to $3.09 per share for the fourth quarter ending on Jan. 31, down from $3.17 a year earlier.
Analysts on average had expected profit of $1.90 a share for the quarter, according to Reuters Estimates.
For the full year, Sears expects to earn $1.27 to $1.90 per share, compared with analysts' estimates of 53 cents.
The company also said December sales at its stores open at least a year fell 7.3 percent, with Kmart down 1.1 percent and U.S. Sears stores dropping 12.8 percent.
K-mart, which had been a drag is outperforming now that consumers are switching to low cost retailes. Same-store sales fell less than many of its competitors. However, Sears posted terrible numbers of the last 2 years so the comparison is easy for Sears. Also, the company supposedly bought back more shares in the $40ish range.
I think 2009 will be challenging given the deteriorating economy. Tags: Sears Holdings (SHLD)