4 Reasons To Like Finish Line Over The Long Term
Finish Line Inc (NASDAQ: FINL) is scheduled to report its 1Q results on June 24. Citi’s Kate McShane maintained a Buy rating for the company, with a price target of $23. The analyst expects the company to report EPS of $0.20 and revenue growth of 1.7 percent for the quarter.
Citi 1Q Forecasts Versus Consensus
The EPS forecast of $0.20 is lower than the consensus expectation of $0.22 and represents a $0.10 y/y decline, “as FINL continues to work through elevated supply chain spending during 1H and product margin headwinds related to the supply chain disruption,” analyst Kate McShane mentioned.
The revenue forecast is at $451M, representing 1.7 percent y/y growth and slightly higher than the consensus expectation of $449M. Both SSS and gross margin estimates, at 2.5 percent and 31.1 percent, are above the consensus expectations of 2.4 percent and 30.9 percent. However, operating margin forecast, at 3.0 percent, is lower than the consensus of 3.4 percent, due to supply chain issues, McShane added.
Attractive Long-Term Idea
Although the market has been choppy, the analyst believes Finish Line is an attractive long-term investment. She cited the following reasons:
- Continued momentum and innovation in athletic apparel & footwear
- Executive leadership transition
- Store remodel and optimization plans
- Positive commentary around increased capital return
Latest Ratings for FINL
|Oct 2016||Susquehanna||Initiates Coverage On||Neutral|
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