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4 Reasons To Like Finish Line Over The Long Term

4 Reasons To Like Finish Line Over The Long Term
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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.

Related Link: Goldman Maintains Neutral On Finish Line Ahead Of Q1 Earnings

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:

  1. Continued momentum and innovation in athletic apparel & footwear
  2. Executive leadership transition
  3. Store remodel and optimization plans
  4. Positive commentary around increased capital return

Latest Ratings for FINL

Mar 2018CitigroupUpgradesSellNeutral
Mar 2018CitigroupMaintainsNeutralNeutral
Mar 2018Credit SuisseInitiates Coverage OnUnderperform

View More Analyst Ratings for FINL
View the Latest Analyst Ratings

Posted-In: Citi Kate McShaneAnalyst Color Long Ideas Reiteration Analyst Ratings Trading Ideas Best of Benzinga


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