Sterne Agee Neutral on Destination Maternity Corporation

Sterne Agee is out with a research report on Destination Maternity Corporation DEST and it has a Neutral rating on shares. In a note to clients, Sterne Agee writes, "We expect DEST to offer Q1 guidance and update its FY12 guidance. Our projection for Q1 is $0.41 with the FC consensus lower at $0.38. DEST's FY12 guidance was for sales to gain 4%-6.5% to $544.5 -$547.5 million with comps up 2.5%-4.5% with EPS gains of 2% to 10% over FY11 guidance of $1.73-$1.83. Our FY12 estimate is $1.90, a 10% gain over $1.73 per share in line with FC consensus. The second half of the year is expected to reflect larger gains in EPS due to merchandise initiatives under the new President along with easier comparisons against the expanded Macy's (M $30.75 - Neutral, covered by Ken Stumphauser) program which began in February 2011." Shares of DEST are off 34 cents to $16.07.