Finish Line Tops Q4 Expectations, Shares Surge

Shares of

jumped over 8% in pre-market trading after the company reported better-than-expected results for the fiscal fourth quarter. The Indianapolis, Indiana-based company posted quarterly net income of $40.8 million, or $0.87 per share, compared to $43.0 million, or $0.87 per share, in the year-ago period. Excluding items, non-GAAP diluted earnings came in at $0.88 per share. Its revenue climbed 6.3% to $551.3 million. However, analysts were expecting earnings of $0.85 per share on revenue of $550.5 million. Its comparable store sales rose 2.6% in the quarter. As of February 28, 2015, the company's consolidated merchandise inventories rose 13.2% to $344.4 million, versus $304.2 million as of March 1, 2014. During the fourth quarter, Finish Line repurchased 0.7 million shares of common stock for $15.9 million. The company's board authorized a new 5 million share repurchase plan. "Our fourth quarter results, especially for our core business, represent a solid finish to a disappointing year," said Glenn Lyon, Chairman and Chief Executive Officer of Finish Line. "We quickly reduced expenses and gained better leverage to deliver earnings ahead of plan. At the same time, we made progress rebalancing our inventory to better align with customer demand. While there is still work to be done to achieve operational excellence throughout the Company, we have a sound plan in place to improve profitability and continue our long track record of returning increased value to our shareholders." For the full year, Finish Line projects EPS growth in the low single to mid single digit range from fiscal year 2015 non-GAAP earnings of $1.67 per share. It also expects comparable store sales to rise in the low single to mid single digit range. The average estimate of 15 users surveyed by Estimize was for earnings of $0.86 per share and revenue of $555.54 million. Finish Line shares surged 8.19% to $25.90 in pre-market trading.