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Party City shares surge after earnings double

Party City store in Hamilton, New Jersey
Dorann Weber | Getty Images
Party City store in Hamilton, New Jersey

Shares of Party City leaped more than 7 percent Thursday after reporting earnings per share that doubled year-over-year.

The party supplies retailer posted adjusted earnings of 24 cents a share in the second quarter, 5 cents a share above FactSet expectations and double the 12 cents reported in the same quarter last year.

Net sales rose nearly 5 percent to $515 million, the company said in a release.

"They've had a strong summer graduation period," said Rick Nelson, specialty retail analyst at Stephens, which has an "overweight" rating on the stock and a price target of $20. He also said the report indicated the new TV promotions are working.

Party City shares closed at $17.63 and are up more than 36 percent for the year so far.