Second Look: 1-800-Flowers.com continues climb on 3Q results
NEW YORK—Shares of 1-800-Flowers.com rose on Friday, a day after the online floral and gift delivery service reported robust fiscal third-quarter results.
On Thursday, the Carle Place, N.Y.-based company said quarterly profit tripled to beat analyst expectations, helped by cost cutting and sales related to Valentine's Day and Easter. Revenue rose 3 percent to $219.6 million.
Shares rose 3 percent on Thursday. In afternoon trading Friday, shares added another 49 cents, or 5.8 percent, to $8.96. The stock has traded between $6.34 and $13.42 over the past year.
Morgan Joseph & Co. analyst James Leahy said in a note to investors that revenue was somewhat soft, as consumers pulled back on spending, but the company managed costs effectively to boost results.
"We are pleased with the company's ability to continue to manage its costs, which should help it weather the consumer environment," Leahy wrote.
He also said the company's Martha Stewart-branded collection of flower arrangements and plants, launched this month, could help offset potential weakness in the consumer floral business going forward.
Leahy reiterated his "Buy" rating and $13 price target on the stock.
