Jefferies Cuts Price Targets on WMS Industries (WMS) Following Quarterly Results & Outlook
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Price: $25.40 -0.08%
Rating Summary:
2 Buy, 13 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Rating Summary:
2 Buy, 13 Hold, 3 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 13
Trade WMS Now!
Jefferies is maintaining its Hold rating on shares of WMS Industries (NYSE: WMS) and is lowering its price target from $22 to $20 following the release of its Q1 results.
The company released its Q1 results below expectations with adjusted EPS of $0.24 on $155.6 million in revenue. The Street was forecasting EPS of $0.30 on $170.58 million in revenue.
Management lowered its FY12 revenue guidance, but noted operating margins are expected to grow due to continued improvement of the company's cost structure.
To go inline with current market conditions and management's recent performance, Jefferies is lowering its Q2 and FY12 EPS estimates from $0.39 and $1.77 to $0.32 and $1.60. The firm's EBITDA estimate for FY12 was also cut from $240.4 million to $233.2 million.
An analyst at Jefferies comments, "We believe WMS’ quarter is indicative of the story’s loss of its critical product momentum and reinforces our cautious stance on the stock. As mgmt continues to push new product and attempt to recapture attention in a competitive market, we believe the recovery will occur for WMS, albeit at an uncertain trajectory."
For an analyst ratings summary and ratings history on WMS Industries click here. For more ratings news on WMS Industries click here.
Shares of WMS Industries closed at $21.95 yesterday, with a 52 week range of $16.24-$49.11.
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The company released its Q1 results below expectations with adjusted EPS of $0.24 on $155.6 million in revenue. The Street was forecasting EPS of $0.30 on $170.58 million in revenue.
Management lowered its FY12 revenue guidance, but noted operating margins are expected to grow due to continued improvement of the company's cost structure.
To go inline with current market conditions and management's recent performance, Jefferies is lowering its Q2 and FY12 EPS estimates from $0.39 and $1.77 to $0.32 and $1.60. The firm's EBITDA estimate for FY12 was also cut from $240.4 million to $233.2 million.
An analyst at Jefferies comments, "We believe WMS’ quarter is indicative of the story’s loss of its critical product momentum and reinforces our cautious stance on the stock. As mgmt continues to push new product and attempt to recapture attention in a competitive market, we believe the recovery will occur for WMS, albeit at an uncertain trajectory."
For an analyst ratings summary and ratings history on WMS Industries click here. For more ratings news on WMS Industries click here.
Shares of WMS Industries closed at $21.95 yesterday, with a 52 week range of $16.24-$49.11.
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