FBR Capital Maintains an 'Underperform' on Aeropostale (ARO); Fashion Miss Leads to Less than Graceful Descent from Peak Margins
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Price: $0.15 --0%
Rating Summary:
5 Buy, 25 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 18 | New: 6
Rating Summary:
5 Buy, 25 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 12 | Down: 18 | New: 6
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FBR Capital maintains an 'Underperform' on Aeropostale, Inc. (NYSE: ARO), PT $20.
FBR analyst says, "We have had ARO rated Underperform since the comp and margin began to unravel in the back half of 2010. We were concerned that comp trends could decelerate further and margins could compress sharply. Now that we are beginning to see these predictions play out, it has become a matter of figuring out how soon things improve. Management sounded confident that it knew the fixes that needed to be made and that these changes would be underway for back to school. We think there is no hurry to get off the Underperform rating as there is limited visibility to a turn. Furthermore, in light of some other big misses in the sector, the group should be under some pressure in near term. That said, it is a well-capitalized company that will ultimately find its way."
"We have revised our 2Q11 EPS estimate to $0.16 from $0.26, at the high end of management's $0.11–$0.16 guidance. We have also revised our CY11 EPS estimate to $1.72 from $1.80. We tweaked our FY12 estimate to $1.85 from $1.84 prior. The company did not give guidance beyond 2Q11 due to a lack of visibility."
For more ratings news on Aeropostale, Inc. click here and for the rating history of Aeropostale, Inc. click here.
Shares of Aeropostale, Inc. closed at $21.34 yesterday.
FBR analyst says, "We have had ARO rated Underperform since the comp and margin began to unravel in the back half of 2010. We were concerned that comp trends could decelerate further and margins could compress sharply. Now that we are beginning to see these predictions play out, it has become a matter of figuring out how soon things improve. Management sounded confident that it knew the fixes that needed to be made and that these changes would be underway for back to school. We think there is no hurry to get off the Underperform rating as there is limited visibility to a turn. Furthermore, in light of some other big misses in the sector, the group should be under some pressure in near term. That said, it is a well-capitalized company that will ultimately find its way."
"We have revised our 2Q11 EPS estimate to $0.16 from $0.26, at the high end of management's $0.11–$0.16 guidance. We have also revised our CY11 EPS estimate to $1.72 from $1.80. We tweaked our FY12 estimate to $1.85 from $1.84 prior. The company did not give guidance beyond 2Q11 due to a lack of visibility."
For more ratings news on Aeropostale, Inc. click here and for the rating history of Aeropostale, Inc. click here.
Shares of Aeropostale, Inc. closed at $21.34 yesterday.
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