Jo-Ann Stores surges on 2Q results, higher outlook

The stock advanced $2.27, or 10 percent, to $24.94, trading on heavy volume. The stock is approaching its 52-week high of $26.50. It has traded as low as $9.03 in the same time frame.

On Wednesday, Jo-Ann Stores posted a quarterly loss of $11.7 million, or 47 cents per share, compared with a loss of $18.4 million, or 76 cents per share, in the year-ago period. The results came in well ahead of analysts' target of a loss of 66 cents per share.

The company also boosted its 2009 outlook to earnings of 95 cents to $1.05 per share, from the previously estimated range of 75 cents to 85 cents per share. Analysts anticipate a per-share profit of 94 cents, according to a poll by Thomson Reuters.

The company expects same-store sales to grow 2 percent to 3.5 percent for the year and to make capital expenditures of roughly $60 million.

Soleil-Stein Research LLC analyst Jeffery Stein called the results an "upside surprise" in a research note Thursday, saying the company is gaining share in fabrics and crafts and is improving margins.

He upgraded his rating on Jo-Ann Stores to "Buy" from "Hold" and raised his price target to $30 from $25.