Why Rent The Runway Shares Are Skyrocketing Today
Portfolio Pulse from Nabaparna Bhattacharya
Rent The Runway, Inc. (NASDAQ:RENT) shares surged in premarket trading after reporting Q4 financial results. Despite missing EPS estimates with a loss of $(7.02) per share, quarterly sales of $75.8 million exceeded expectations. Gross profit fell by 10.2% year over year, and gross margin contracted. However, adjusted EBITDA improved significantly, and the company provided positive revenue guidance for Q1 and FY 2024.
April 11, 2024 | 1:17 pm
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Rent The Runway's Q4 results showed mixed performance with sales beating estimates but EPS missing. The company's positive adjusted EBITDA and optimistic revenue guidance for Q1 and FY 2024 could drive investor sentiment.
Despite missing EPS estimates, RENT's sales beat and improved adjusted EBITDA, along with positive revenue guidance, are likely to positively impact investor sentiment in the short term. The significant premarket stock price increase reflects immediate positive reaction.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100