Needham & Company Q1 Earnings Preview on Kid Brands (KID); Softness, But Proper Steps Being Taken to Bear Fruit

May 10, 2012 10:22 AM EDT
Get Alerts KID Hot Sheet
Price: $0.36 --0%

Rating Summary:
    2 Buy, 2 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 22 | Down: 16 | New: 12
Trade KID Now!
Join SI Premium – FREE
Needham & Company maintains a 'Strong Buy' on Kid Brands (NYSE: KID) price target of $8.00.

Analyst, Sean McGowan, said, "We are expecting KID to report 1Q sales of $56.0 million vs. $59.8 million last year, with surprises more likely to be on the negative side. KID continues to work with retailers to reduce retail inventories of slow-moving products, and we do not expect YoY sales increases until late in the year."

"We believe that if sales can begin showing growth later this year, and EPS can get to an annualized rate of about $0.60 (our estimate for 2013), KID can sell
at about $8 per share, a P/E of about 13x our 2013 EPS estimate, and an EV/EBITDA multiple of less than 8x."

For an analyst ratings summary and ratings history on Kid Brands click here. For more ratings news on Kid Brands click here.

Shares of Kid Brands closed at $2.16 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments, Analyst EPS View

Related Entities

Needham & Company, Earnings

Add Your Comment