DA Davidson Cuts Price Target on Ambassadors Group (EPAX) Ahead of Q2 Conference
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Price: $2.89 --0%
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 0 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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DA Davidson is maintaining its Neutral rating on shares of Ambassadors Group (NASDAQ: EPAX), but is lowering its price target from $11 to $10.
The company is expected to report its second quarter results on July 27 following the close of the market and will host a conference call the following morning.
The firm is forecasting that second quarter earnings will be $0.83 per share, which is above the Street's estimate of $0.81 and last years figure of $0.78. They anticipate that net income will fall slightly year-over-year from $15.2 million to $15 million flat. The raise is earnings per share estimate is due to a 7 percent reduction in total shares from a year ago.
DA Davidson is predicting that the total number of travelers will decline from 13,396 last year to 12,700 due to continuing low consumer confidence, fewer leadership program participants, and participants withdrawing without penalty following last March’s devastating earthquake, tsunami, and nuclear plant disaster in Japan.
As a result of fewer participants, the firm expects gross margin to be lower year-over-year from $34.5 million to $33.5 million.
Cost saving methods put in place last year will help offset lower revenues from less travelers.
The firm is anticipating that EPAX will provide explicit details into the second half of the year since the second quarter is now over. An analyst at DA Davidson comments, "We expect the company to place specific attention on the financial implications of its enrollment & withdrawal rates, fuel surcharges, a relatively weak dollar, and share repurchase activity."
For more ratings news on Ambassadors Group click here and for the rating history of Ambassadors Group click here.
Shares of Ambassadors Group closed at $9.00 yesterday.
The company is expected to report its second quarter results on July 27 following the close of the market and will host a conference call the following morning.
The firm is forecasting that second quarter earnings will be $0.83 per share, which is above the Street's estimate of $0.81 and last years figure of $0.78. They anticipate that net income will fall slightly year-over-year from $15.2 million to $15 million flat. The raise is earnings per share estimate is due to a 7 percent reduction in total shares from a year ago.
DA Davidson is predicting that the total number of travelers will decline from 13,396 last year to 12,700 due to continuing low consumer confidence, fewer leadership program participants, and participants withdrawing without penalty following last March’s devastating earthquake, tsunami, and nuclear plant disaster in Japan.
As a result of fewer participants, the firm expects gross margin to be lower year-over-year from $34.5 million to $33.5 million.
Cost saving methods put in place last year will help offset lower revenues from less travelers.
The firm is anticipating that EPAX will provide explicit details into the second half of the year since the second quarter is now over. An analyst at DA Davidson comments, "We expect the company to place specific attention on the financial implications of its enrollment & withdrawal rates, fuel surcharges, a relatively weak dollar, and share repurchase activity."
For more ratings news on Ambassadors Group click here and for the rating history of Ambassadors Group click here.
Shares of Ambassadors Group closed at $9.00 yesterday.
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