Can Someone Explain?

[grumpy]

I have owned shares in Kellwood Corp. (KWD) for about 10 years. Today the stock is up $1.28 or 4.1% to $32.53 per share. The only news I could find was the following:

"Kellwood Co. (KWD) said Friday its third-quarter income from continuing operations fell to $5.5 million, or 21 cents a share, from $7.9 million, or 29 cents, a year earlier.

Net income for the three months ended Oct. 28 fell to $8.1 million, or 31 cents a share, from $16.2 million, or 60 cents.

The average earnings estimate of five analysts surveyed by Thomson First Call was 64 cents.

The St. Louis apparel company said revenue fell to $516.4 million from $520 million."


I'm not complaining, mind you. I like to see my shares go up, but I am at a loss to understand why anyone is suddenly ready to pay 4% more for them today than yesterday. What am I missing?

Grumpy

 

[justin]

The market must have thought earnings were going to be lower, and the market was pleasantly surprised that the results weren't as bad as originally thought.

 

[brewer12345]

Yes, but "ex items" the results were actually $.68/share versus estimates of $.63. A broker upgraded it also. So if you ignore all the inconvenient bad stuff, they did great! Buy! Buy! Buy! :