Cabela's, which is a specialty retailer and a direct marketer of hunting, fishing, camping and related outdoor merchandise, is expected to announce its second quarter numbers on July 28. Wall Street expects earnings of $0.61 a share on revenue of $905.59 million.
Rating, Expectations And Justification
MKM Partners, which has a Buy rating on the stock, expects EPS of $0.61 on revenue of $902.8 million.
For the second quarter, MKM continues to model a 2.0 percent drop in comp after the first quarter's 4.3 percent decline. The Street's comp estimate is (1.6 percent).
"We believe firearms and powersports continued to be the strongest areas of the store, while apparel was likely the weakest. We note that adjusted NICS increased nearly 15 percent y/y in the quarter and were particularly strong in June (up 29 percent)," analyst Patrick McKeever wrote in a note.
McKeever projects gross margin of 35.3 percent, down 60 bps year-over-year, while he expects cost cuts should continue to benefit margins/EPS. Cabela's continues to benefit from initiatives aimed at up to 150 bps of cost savings by late FY18.
The quarterly results come at a time when media reports continue to point to Bass Pro as most likely buyer for Cabela's, which announced a strategic review in early December.
"We continue to think our $56 price target could be conservative if Cabela's was acquired, though we also think a mid-$60 take-out valuation," McKeever noted.
Shares of Cabela's closed Friday's regular trading session at $53.95, and were seen trading up 0.63 percent at $54.29 within the first hour of Monday's regular trading session.
Full ratings data available on Benzinga Pro.
Did you like this article? Could it have been improved? Please email feedback@benzinga.com with the story link to let us know!
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
