D.A. Davidson & Co. Sees Healthy Quarter With Excellent Momentum Heading Into FY15 For Performance Sports Group Ltd.

In a report published Tuesday, D.A. Davidson & Co. analyst Andrew Burns reiterated a Buy rating and $21.00 price target on Performance Sports Group Ltd. PSG. In the report, D.A. Davidson & Co. noted, “PSG reported revenue and adjusted EPS of $112.9 million and $0.29 (GAAP $0.24), compared to consensus at $109.5 million and $0.20, and our estimates of $104.1 million and $0.21. EPS included a 1x $0.09 benefit from a litigation settlement with BRG Sports. Revenue grew 30% year-over-year (y/y), or 35% in constant currency (c.c.), driven by strength in hockey equipment (+14% c.c.) & lacrosse (+29%), and the addition of Easton. Adjusted gross margin contracted 259bp y/y to 38.8%, driven by the inclusion of Easton's 6-week contribution and unfavorable FX. SG&A (excluding the $6 million settlement) was up 11.6% to $21.1 million, representing 18.7% percent of sales (vs. 21.8% in 4Q13). Specific FY15 guidance was not provided, but management expects to grow faster than the sports they serve and generate record revenue and earnings.” Performance Sports Group Ltd. closed on Monday at $17.02.