Shares of Jamba Inc. rose modestly at market open Wednesday after the smoothie chain operator reported a first-quarter net loss in line with analyst estimates.
Late Tuesday, the Emeryville, Calif., company said its loss for the quarter ended April 22 narrowed by nearly half to $6.4 million or 12 cents per share. Slower revenue at its California stores and lower gains from derivatives weighed on earnings, the company said. Excluding several items, the adjusted loss of 15 cents per share missed estimates, according to Farmer.
The stock gained 6 cents, or 2.4 percent, to $2.56 Wednesday morning.
In a note to investors, Jefferies analyst Jeff Farmer maintained his "Hold" rating on Jamba. He said he saw little to move the stock in the near term.
However, the company's recent layoffs are a good step toward better cost control, he said. Farmer maintained his earnings estimates, but added that still more cost-saving measures may be needed.
On May 15, Jamba said it will close 10 underperforming stores, eliminate 53 employees and end seven signed leases for unbuilt stores. As of April 22, the company had 726 stores, 515 of which were company-owned.
Farmer maintained his $3 price target, meaning he expects the stock to rise 20 percent from its Tuesday closing price of $2.50.
Jamba shares are off 77 percent from a 52-week high of $10.89 in last June.