Childrens Place Left 'Significant Wiggle Room' On Its Guidance

Stephens' Rick Patel reiterated The Children’s Place (NASDAQ: PLCE) at Equal-Weight with a price objective of $80.00 after a “sizeable [earnings] beat” Tuesday morning. Children’s Place reported 1QFY16 adjusted EPS of $1.32 vs. Stephen’s estimate of $1.03 and the Street’s estimate of $1.04.

Much of the surprise was due to “smarter inventory management, and higher comps and margins… which we think can continue." Patel also praised the company’s “significant wiggle room” in guidance, avoiding risky and aggressive year over year projections.

As a result of positive earnings results and guidance, Childrens Place tradied up 4.1 percent to $71.05.