DA Davidson Downgrades Sara Lee (SLE) to Underperform; Core Business Erosion Continues in Sloppy Q1
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Price: $4.03 -6.93%
Rating Summary:
5 Buy, 2 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
5 Buy, 2 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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DA Davidson downgraded Sara Lee (NYSE: SLE) to Underperform with a price target of $16.00.
DA analyst says, "Sara Lee reported Q112 operating EPS of $0.18, up 50% from $0.12 last year, in line with our estimate, and slightly ahead of the Street at $0.17. The gain really came from “other items:” Unusually low corporate expense, lower shares outstanding and lower interest expense. EBIT before these items grew 3.1%. Net sales of $1.9 billion rose 12.5% year-over-year on a 10.7% increase in price/mix; F/X contributing 4.4%; acquisitions and other contributed 2.1% but volumes declined 4.7%. In real terms, excluding commodity price pass-through, the business got smaller, which, unfortunately, is Sara Lee’s persistent theme."
"Our FY12 estimate goes to $0.89, previously $0.90, and our FY13 view becomes $0.95, previously $1.00."
For more ratings news on Sara Lee click here and for the rating history of Sara Lee click here.
Shares of Sara Lee closed at $18.70 yesterday.
DA analyst says, "Sara Lee reported Q112 operating EPS of $0.18, up 50% from $0.12 last year, in line with our estimate, and slightly ahead of the Street at $0.17. The gain really came from “other items:” Unusually low corporate expense, lower shares outstanding and lower interest expense. EBIT before these items grew 3.1%. Net sales of $1.9 billion rose 12.5% year-over-year on a 10.7% increase in price/mix; F/X contributing 4.4%; acquisitions and other contributed 2.1% but volumes declined 4.7%. In real terms, excluding commodity price pass-through, the business got smaller, which, unfortunately, is Sara Lee’s persistent theme."
"Our FY12 estimate goes to $0.89, previously $0.90, and our FY13 view becomes $0.95, previously $1.00."
For more ratings news on Sara Lee click here and for the rating history of Sara Lee click here.
Shares of Sara Lee closed at $18.70 yesterday.
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