PHILADELPHIA (AP) — Destination Maternity said Tuesday that its fiscal fourth-quarter revenue dipped slightly, but the results still managed to beat Wall Street's expectations. The maternity clothing company also anticipates that quarterly earnings will beat its previous projection and come in well above its performance a year ago.
Its shares surged more than 9 percent in morning trading on Tuesday.
Destination Maternity said that its quarterly revenue fell less than 1 percent to $128.5 million. The Philadelphia company had predicted revenue in a range of $125.5 million to $130 million.
Analysts polled by FactSet forecast $128.4 million.
Sterne Agee's Margaret Whitfield is more optimistic on the retailer, raising earnings estimates for 2012 through 2014. The analyst maintained a "Neutral" rating and gave a $19 price target.
Destination Maternity Corp., whose stores include A Pea in the Pod, Motherhood Maternity and its namesake, says its revenue declined mostly because it closed underperforming stores and because sales from its licensed relationship came in lower.
The retailer expects its quarterly earnings will top its prior outlook of 17 cents to 28 cents per share. The results are also expected to significantly top the year-ago period's 20 cents per share.