DA Davidson Cuts Price Target on Collective Brands (PSS) Ahead of Second Quarter Earnings
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Price: $21.72 --0%
Rating Summary:
4 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
4 Buy, 7 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
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DA Davidson is reaffirming its Buy rating on shares of Collective Brands (NYSE: PSS) and is lowering its price target by $1 to $16 ahead of its second quarter earnings.
The company is expected to report its second quarter results on August 24 following the closing bell.
The firm is cutting its EPS estimate for the second quarter from $0.23 to $0.11 as they expect that comps will decline by 2.2 percent. DA Davidson believes that macro economic headwind continue to weigh on sales at Payless domestic, and as a result is lowering its GPM estimate for the quarter by 40 bps to 32.4 percent.
To go inline with its new outlook for the company, the firm reduced its FY11 EPS estimate from 1.29 to $0.92 and its FY12 from $1.78 to $1.30. For FY11 DA Davidson is expecting a negative 2.7 percent in comps.
An analyst at DA Davidson comments, "Uncertainty related to bringing in a new CEO and a potential reassessment of strategic priorities suggests more near-term fluidity to estimates. We believe FY11 will ultimately end up being more of a transition year that resets expectations and positions the company for solid improvement next year."
For more ratings news on Collective Brands click here and for the rating history of Collective Brands click here.
Shares of Collective Brands closed at $9.94 yesterday, with a 52 week range of $9.17-$23.96.
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The company is expected to report its second quarter results on August 24 following the closing bell.
The firm is cutting its EPS estimate for the second quarter from $0.23 to $0.11 as they expect that comps will decline by 2.2 percent. DA Davidson believes that macro economic headwind continue to weigh on sales at Payless domestic, and as a result is lowering its GPM estimate for the quarter by 40 bps to 32.4 percent.
To go inline with its new outlook for the company, the firm reduced its FY11 EPS estimate from 1.29 to $0.92 and its FY12 from $1.78 to $1.30. For FY11 DA Davidson is expecting a negative 2.7 percent in comps.
An analyst at DA Davidson comments, "Uncertainty related to bringing in a new CEO and a potential reassessment of strategic priorities suggests more near-term fluidity to estimates. We believe FY11 will ultimately end up being more of a transition year that resets expectations and positions the company for solid improvement next year."
For more ratings news on Collective Brands click here and for the rating history of Collective Brands click here.
Shares of Collective Brands closed at $9.94 yesterday, with a 52 week range of $9.17-$23.96.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
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