Needham & Company Raises Big 5 Sporting Goods (BGFV) PT to $20 on Bullish Outlook

February 27, 2013 7:46 AM EST
Get Alerts BGFV Hot Sheet
Price: $15.65 +0.64%

Rating Summary:
    4 Buy, 5 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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Needham & Company raised its price target on Strong Buy-rated Big 5 Sporting Goods (NASDAQ: BGFV) from $17 to $20 following strong Q4 results and bullish Q1 guidance.

The firm comments, "e company expects 1Q SSS to grow in the high single digits with EPS of $0.18-$0.24, both of which were well above consensus expectations. Management cited continued strength in firearms and ammunition sales, as well as YoY improvements in winter weather as major drivers of improvement. As announced in mid-January, 4Q sales rose 7.5% YoY to $243.6mm and SSS grew 6.5%. EPS were $0.19, which was at the high end of management’s updated guidance ($0.17-$0.19). GMs increased 100 bps YoY to 32.2% of sales due to a 20bps improvement in merchandise margin, with the remaining increase coming from increased occupancy leverage. SG&A expenses decreased 210 bps YoY to 29.2% of sales but featured a $1.5mm non-cash charge in 4Q11. Management announced a 33.3% increase in quarterly dividends; the annual dividend is now $0.40 per share. 1Q EPS guidance is $0.10 above our prior estimate, and we are raising our 2013 full year EPS estimate by $0.10 to $1.20. Our 2014 EPS estimate remains $1.40, and we are introducing a 2015 EPS estimate of $1.65."

For an analyst ratings summary and ratings history on Big 5 Sporting Goods click here. For more ratings news on Big 5 Sporting Goods click here.

Shares of Big 5 Sporting Goods closed at $15.15 yesterday.

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