Stifel Remains Sidelined on Zoe's Kitchen, Inc. (ZOES) Following 2Q Report
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Stifel reiterated a Hold rating on Zoe's Kitchen, Inc. (NYSE: ZOES) following the company's 2Q earnings report. ZOES reported EPS in-line with both Stifel's and consensus estimates. Stifel reduced 2H16/2017 EPS estimates by -$0.03/-$0.03 to -0.02E/$0.20E (vs. our prior $0.01E/$0.23E and consensus’ $0.02E/$0.23E).
Analyst Paul Westra commented, "We reiterate our more cautious view on Hold-rated ZOES on an expected -15% lower opening after ZOES posted a “worse” 2Q16 release that included: (1) in-line 2Q16 OpEPS of $0.06 (vs. consensus’/our $0.06E) driven by mixed (a) -110bps/+40bps worse/better 2Q16 comps/store-margins of +4.0%/21.7% (vs. consensus’ +5.1%E/21.3%E); but where, most importantly, and as we cautioned within our recent downgrade notes (see 07/26/16 Restaurant Industry/ZOES reports), mgt issued much-worse (2) -270bps/-110bps below-consensus implied midpoint 2H16 comps/store-margin guidance of +2.0%/19.2% (vs. consensus’ 2H16’s +4.7%E/20.3%E). We reduce our forward 2H16 comp outlook by -250bps to +2.0%E (vs. prior +4.5%E; consensus’ +4.7%E) and reduce our forward 2H16/2017 EPS outlook by -$0.03/-$0.03 to -0.02E/$0.20E (vs. our prior $0.01E/$0.23E; consensus’ $0.02E/$0.23E) and continue to believe that ZOES shares are fairly valued trading at a 2017 P/E of 155-times."
Shares of Zoe's Kitchen closed at $37.25 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Wedbush Remains Bullish on Amazon.com (AMZN) Following 3Q
- Jefferies Raises Price Target on Texas Instruments (TXN) Following 3Q Report
- FBR Capital Cuts Price Target on Government Properties Income Trust (GOV) to $25
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View
Related EntitiesStifel, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!