Dillard’s (NYSE:DDS) Shares Gap Up Following Strong Earnings

Dillard’s, Inc. (NYSE:DDS) gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $532.92, but opened at $588.00. Dillard’s shares last traded at $549.9290, with a volume of 28,015 shares.

The company reported $16.04 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $10.13 by $5.91. The business had revenue of $1.59 billion during the quarter, compared to analysts’ expectations of $1.55 billion. Dillard’s had a return on equity of 31.89% and a net margin of 10.09%.The company’s revenue for the quarter was up 2.7% on a year-over-year basis. During the same quarter in the previous year, the business earned $10.39 EPS.

Dillard’s Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Monday, May 4th. Shareholders of record on Tuesday, March 31st were paid a dividend of $0.30 per share. This represents a $1.20 annualized dividend and a yield of 0.2%. The ex-dividend date was Tuesday, March 31st. Dillard’s’s payout ratio is currently 3.30%.

Dillard’s News Roundup

Here are the key news stories impacting Dillard’s this week:

• Positive Sentiment: Q1 earnings came in well above estimates at $16.04 per share versus about $10 expected, while revenue also topped forecasts, signaling better-than-anticipated profitability and demand. Dillard’s, Inc. Reports First Quarter Results
• Positive Sentiment: Comparable-store sales rose 3% and total retail sales increased 3%, showing improving traffic and stronger merchandise demand across all major categories. Dillard’s Q1 Earnings & Sales Beat Estimates, Retail Sales Up 3%
• Positive Sentiment: Gross margin improved to 45.8% and net income jumped to $250.6 million, helped by a favorable litigation settlement and better operating leverage. Dillard’s Shares Rise After Earnings Beat Fueled by Litigation Settlement (DDS)
• Neutral Sentiment: Management opened a new store in Ohio and raised inventory slightly, but also noted higher operating expenses, which could temper margin gains if costs stay elevated. Dillard’s, Inc. Reports First Quarter Results
• Negative Sentiment: Some analysts remain cautious, arguing the strength may be temporary because results were aided by one-time litigation gains and may not fully reflect underlying retail demand. Dillard’s: Strength Is Temporary

Wall Street Analyst Weigh In

Several research firms recently weighed in on DDS. Weiss Ratings restated a “hold (c)” rating on shares of Dillard’s in a report on Wednesday, January 21st. Telsey Advisory Group reduced their price target on Dillard’s from $700.00 to $650.00 and set a “market perform” rating for the company in a report on Wednesday, February 25th. JPMorgan Chase & Co. decreased their price objective on shares of Dillard’s from $524.00 to $449.00 and set an “underweight” rating for the company in a report on Wednesday, February 25th. Wall Street Zen cut Dillard’s from a “buy” rating to a “hold” rating in a research note on Saturday, March 28th. Finally, UBS Group increased their target price on Dillard’s from $460.00 to $465.00 and gave the stock a “sell” rating in a report on Wednesday, May 6th. Three equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Dillard’s currently has an average rating of “Reduce” and a consensus price target of $521.33.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in DDS. Rockefeller Capital Management L.P. increased its position in Dillard’s by 108.7% in the fourth quarter. Rockefeller Capital Management L.P. now owns 48 shares of the company’s stock worth $29,000 after buying an additional 25 shares during the period. Atlas Capital Advisors Inc. acquired a new position in shares of Dillard’s during the fourth quarter valued at $29,000. Quarry LP acquired a new position in shares of Dillard’s during the third quarter valued at $33,000. EverSource Wealth Advisors LLC grew its position in shares of Dillard’s by 790.0% during the second quarter. EverSource Wealth Advisors LLC now owns 89 shares of the company’s stock worth $37,000 after acquiring an additional 79 shares during the last quarter. Finally, Global Retirement Partners LLC grew its position in shares of Dillard’s by 6,300.0% during the fourth quarter. Global Retirement Partners LLC now owns 64 shares of the company’s stock worth $39,000 after acquiring an additional 63 shares during the last quarter. Institutional investors and hedge funds own 67.15% of the company’s stock.

Dillard’s Stock Performance

The company has a current ratio of 2.65, a quick ratio of 1.31 and a debt-to-equity ratio of 0.24. The company’s 50-day moving average is $580.45 and its two-hundred day moving average is $619.96. The stock has a market capitalization of $8.44 billion, a P/E ratio of 12.85 and a beta of 1.17.

About Dillard’s

Dillard’s, Inc (NYSE:DDS), headquartered in Little Rock, Arkansas, is a U.S.-based department store chain founded by William T. Dillard in 1938. Over more than eight decades of operation, the company has grown from a single store in Nashville, Arkansas, to a prominent retailer with a national footprint. Dillard’s equity is publicly traded on the New York Stock Exchange under the ticker DDS.

The company operates approximately 280 departmental stores across 29 states, offering a broad assortment of merchandise that includes men’s and women’s apparel, accessories, cosmetics, footwear, and home furnishings.