Sterne Agee CRT Reiterated Buy on Shoe Carnival (SCVL) Following 2Q15 EPS Beat

Sterne Agee CRT maintained a Buy rating and $32.00 price target on Shoe Carnival (NASDAQ: SCVL) following the company's 2Q15 earnings results. SCVL reported EPS of $0.24 versus consensus estimate of $0.18. Revenue was $228M versus consensus estimate of $228.29M. Management maintained FY15 guidance of EPS $1.42-$1.48 on a 1.5%-3.0% increase in SSS. Management is expecting 3Q15 SSS to be up MSD.

Analyst Sam Poser commented, "Reiterate Buy. In a tough retail environment, SCVL is executing well both on the top and bottom line. The later BTS/Labor Day shifted $7M in sales from 2Q to 3Q, and SCVL shifted $3.5M in advertising expense with it. SSS in August are up HSD with two of the largest weeks of the quarter ahead. Inventory and expenses are controlled well and SCVL is set up well to exceed guidance in 2H15. The ongoing rollout of e-commerce and mobile commerce platforms, as well as national advertising, are resulting in an increase in SCVL’s loyalty program, which drives a disproportionate amount of sales, and increased traffic and conversions. Valuation is compelling, as the stock is trading at 15X 2016 EPS and 6X 2016 EBITDA."

For an analyst ratings summary and ratings history on Shoe Carnival click here. For more ratings news on Shoe Carnival click here.

Shares of Shoe Carnival closed at $25.61 yesterday.

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