Janney Montgomery Provides Earnings Preview on Talbots (TLB), Maintains Sell Rating
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Price: $2.76 --0%
Rating Summary:
2 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 7
Rating Summary:
2 Buy, 8 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 6 | Down: 4 | New: 7
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Janney Montgomery Scott is maintaining its Sell rating and $3 fair value estimate on shares of Talbots (NYSE: TLB) as the company is expected to report its Q1 2011 earnings tomorrow morning.
The firm states that shares of TLB tend to be highly volatile on earnings data points and any better than expected trends may result in in a short squeeze. It is also concerned that weakness in the top line may result in earnings pressure and the need to draw down on the line of credit.
An analyst at Janney comments, "we expect ongoing SG&A expense cutting that can help mitigate EPS risk and promotions may have been able to support sales during the quarter, but carryover inventory into 2Q11 appeared heavy on our checks. With ongoing macro concerns, coupled with growing pains of revolutionizing a brand, we expect top-line will remain challenged over the next several quarters."
The firms current Q1 revenue and EPS estimates are $292 million and ($0.05). Its FY11 estimates are $1.129 billion and ($0.05). Janney's FY12 estimates are $1.123 billion and $0.17.
For more ratings news on Talbots click here and for the rating history of Talbots click here.
Shares of Talbots closed at $4.58 yesterday.
The firm states that shares of TLB tend to be highly volatile on earnings data points and any better than expected trends may result in in a short squeeze. It is also concerned that weakness in the top line may result in earnings pressure and the need to draw down on the line of credit.
An analyst at Janney comments, "we expect ongoing SG&A expense cutting that can help mitigate EPS risk and promotions may have been able to support sales during the quarter, but carryover inventory into 2Q11 appeared heavy on our checks. With ongoing macro concerns, coupled with growing pains of revolutionizing a brand, we expect top-line will remain challenged over the next several quarters."
The firms current Q1 revenue and EPS estimates are $292 million and ($0.05). Its FY11 estimates are $1.129 billion and ($0.05). Janney's FY12 estimates are $1.123 billion and $0.17.
For more ratings news on Talbots click here and for the rating history of Talbots click here.
Shares of Talbots closed at $4.58 yesterday.
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