At Home Jumps 8% As 4Q Earnings Crush Estimates

Shares of At Home Group soared 7.6% in Tuesday’s extended trading session after the home décor store chain operator reported better-than-expected 4Q results.

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At Home Group’s (HOME) 4Q adjusted earnings jumped nearly three-fold to $1.08 per share from $0.37 reported in the year-ago quarter and surpassed analysts’ expectations of $0.70. Net sales rose 41.3% to $562 million year-on-year and topped Street estimates of $525.8 million.

Strong year-over-year growth in comparable store sales and an extra week during the quarter were the main drivers behind the company’s overall quarterly results. Comparable store sales grew 30.8% during the quarter on the back of strong demand and benefits from strategic initiative roll-outs. (See At Home Group stock analysis on TipRanks)

At Home CEO Lee Bird said, “We achieved these results despite unprecedented challenges during the year, including mandated store closures and inventory constraints, a clear testament to our compelling value proposition, competitive positioning and incredibly dedicated team members. Our unmatched breadth and depth of assortment at everyday low prices, low-cost structure and omnichannel focus remain key differentiators for us.”

Following the earnings release, Wells Fargo analyst Zachary Fadem raised the stock’s price target to $30 (2.9% downside potential) from $25 and reiterated a Hold rating. In a note to investors, Fadem wrote, “we believe HOME absolutely deserves credit for righting the ship, capturing share and properly managing expectations, but we remain sidelined in hopes of a better entry point.”

Overall, the Street has a cautiously optimistic outlook on the stock with a Moderate Buy consensus rating based on 2 Buys and 2 Holds. The average analyst price target of $28.50 implies downside potential of about 7.7% to current levels. Shares have skyrocketed about 1,414% over the past year.