Party City Reports Second Quarter Earnings Miss

Party City Holdco Inc. (Ticker Symbol: PRTY) released its second-quarter earnings and guidance report that was weaker than expected.  The Rockaway, New Jersey based company reported an earnings per share miss of .22 cents per share vs. Wall Street analysts’ expectations of .36 cents per share. Party City reported a sales miss of $563.9 million vs. Wall Street analysts’ expectations of $572.14 million.  The company also cut its fiscal 2019 sales guidance from $2.49-$2.5 billion to $2.4-$2.45 billion, along with lowering its earnings per share guidance from $1.61-$1.72 to $1.26-$1.36.

(Chart above courtesy of ​www.tipranks.com​)

Based on a survey of 2 analysts offering 12-month price targets, the average price target for Party City’s stock is $8.00. According to that number, the stock is priced at a discount relative to Wall Street’s analysts and could be considered undervalued around current levels near $4.64.

Party City’s stock is trading just under both its 100 and 200-day Moving Averages and is trading at all-time lows today.  The stock is currently 70% away from analysts’ average price target of $8.00.

Viacom Inc. (Ticker Symbol: VIAB) reported earnings per share for the second quarter Thursday morning.  The company reported an earnings per share beat of $1.20 per share vs. Wall Street analysts’ estimates of $1.03 per share.  Viacom also reported weaker than expected revenue of $3.36 billion vs. Wall Street analysts’ estimates of $3.38 billion.  The Comedy Central network was the highlight recording its ninth consecutive quarter of share growth, with growth up 6% year over year.

(Chart above courtesy of ​www.tipranks.com​)

Based on a survey of 4 analysts offering 12-month price targets, the average price target for Viacom’s stock is $36.00. According to that number, the stock is priced at a discount relative to Wall Street’s analysts and could be considered undervalued around current levels near $30.65.

Viacom’s stock is trading just above both its 100 and 200-day Moving Averages.  The stock is currently 17% away from analysts’ average price target of $36.00.

The U.S. stock market has been on a rollercoaster this week, having large swings in both directions.  China announced this week that they were going to weaken their currency to a near-historic low and were going to stop purchasing agricultural goods from the U.S.  Some analysts are saying the move was in retaliation to President Trump announcing that the U.S. will impose a 10% tariff on $300 billion of Chinese goods starting on September 1st.  Investors and traders in the markets should look to next week’s upcoming Consumer Price Index report set to be released on Tuesday at 7:30 a.m.