Needham & Company Maintains a 'Strong Buy' on Build-A-Bear (BBW); Results Catalyzed by Improvements in GM and Strong Cost Controls
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Price: $38.34 +1.48%
Rating Summary:
6 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
6 Buy, 4 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Strong Buy' on Build-A-Bear Workshop (NYSE: BBW) price target of $11.00.
Needham analyst says, "BBW reported Q3 revenues of $97.4 mm and EPS of $0.05, which beat our expectations as well as consensus numbers. While actual sales of $97.4 mm were slightly below our estimate of $97.9 mm, actual EPS were $0.05, ahead of our estimate of $0.03, and well ahead of other Street estimates which called for a loss. Retail gross margins were slightly above our estimate, and were well above last year; positive surprises in costs contributed to the EPS beat. BBW currently trades at 11.1x our 2013 EPS estimates, which we believe presents an attractive valuation given improvements in comp store sales, a strong holiday product catalogue, and future benefits from cost cutting activities. We are raising EPS estimates for 2011, 2012 and 2013 by $0.05 in each year to reflect the 3Q
beat, slightly higher store count and a slightly lower share count."
For more ratings news on Build-A-Bear Workshop click here and for the rating history of Build-A-Bear Workshop click here.
Shares of Build-A-Bear Workshop closed at $6.66 yesterday.
Needham analyst says, "BBW reported Q3 revenues of $97.4 mm and EPS of $0.05, which beat our expectations as well as consensus numbers. While actual sales of $97.4 mm were slightly below our estimate of $97.9 mm, actual EPS were $0.05, ahead of our estimate of $0.03, and well ahead of other Street estimates which called for a loss. Retail gross margins were slightly above our estimate, and were well above last year; positive surprises in costs contributed to the EPS beat. BBW currently trades at 11.1x our 2013 EPS estimates, which we believe presents an attractive valuation given improvements in comp store sales, a strong holiday product catalogue, and future benefits from cost cutting activities. We are raising EPS estimates for 2011, 2012 and 2013 by $0.05 in each year to reflect the 3Q
beat, slightly higher store count and a slightly lower share count."
For more ratings news on Build-A-Bear Workshop click here and for the rating history of Build-A-Bear Workshop click here.
Shares of Build-A-Bear Workshop closed at $6.66 yesterday.
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