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Stitch Fix Inc SFIX shares were climbing on Wednesday after the company reported better-than-expected fiscal third-quarter results . The results came amid an exciting earnings season . Here are some key analyst takeaways.
Truist Securities On Stitch Fix Analyst Youssef Squali reiterated a Hold rating while raising the price target from $3.50 to $4.00.
Stitch Fix reported revenue of $323 million, representing a 16% year-on-year decline but coming in higher than "muted" expectations of $306 million, Squali said in a note. Although the company also reported its adjusted EBITDA ahead of consensus estimates, this excludes $4.1 million of restructuring costs, he added.
The quarter reflects "gradual improvements in the business as green shoots emerged from mgmt’s ongoing turnaround strategy of strengthening its operational foundation while improving the client experience," the analyst wrote "That said, much work remains as mgmt expects active clients to decline further in F4Q24 and into FY25," he further stated. Check out other analyst stock ratings . Wedbush On Stitch Fix Analyst Tom Nikic maintained a Neutral rating and price target of $3.
00. Although Stitch Fix reported better-than-expected results for the fiscal third quarter, "there's still a lot of heavy lifting to do to stabilize the top line," Nikic said. Although the company's revenue was not good in absolute terms, it did beat the guidance and was "the least-negative growth quarter in seven quarters.