AnnTaylor Stores (NYSE:ANN) "Wows" Analysts

FBR Capital said they were "blown away" by the peformance of AnnTaylor Stores (NYSE:ANN) in the third quarter, with sales and margins surging above analysts' expectations. FBR said they're maintaining their 'Outperform/Top Pick' on the retailer as a result, seeing the trend as sustainable over a period of time.

"We were blown away by the strength of AnnTaylor’s 3Q report. Sales and gross margins were better than our well-above-consensus expectations, SG&A was well controlled, and the company bought stock. Sales trends remain positive, guidance looks conservative, and the company plans to buy more stock in 4Q. ANN is not typically a 4Q story, but we think its gift strategy, along with increased interest for self purchase heading into holiday party season, will continue to drive sales...We are raising our sales estimate for the fourth quarter to $500.8 million from $488.9 million...We are raising our CY10 EPS estimate to $1.28 from $1.25, our CY11 sales estimate to $2,125 million from $2,101 million, and our CY11 EPS estimate to $1.98 from $1.96" said FBR.

AnnTaylor soared Friday, closing at $25.77, gaining $2.02, or 8.51 percent. FBR raised their price target on them from $27 to $30.