Needham & Company Maintains a 'Strong Buy' on Summer Infant (SUMR); Continued Margin Pressure Leads To EPS Miss, And To Reductions In Our Estimates

Needham & Company maintains a 'Strong Buy' on Summer Infant (NASDAQ: SUMR) price target of $13.00.

Needham analyst says, "SUMR reported net revenues of $63.3 mm versus our estimate of $63.0 mm and consensus of $61.5. This “beat” represents a 27% increase YoY. Gross Margin for the quarter was 34.7% versus our estimate (in line with consensus) of 36%. This contraction resulted from continued cost pressures and changes in SUMR’s product mix. 3Q EPS were $0.11 versus $0.13 in 2010, and non-GAAP EPS (excluding several one-time items) was $0.15 per share versus our estimate of $0.17. The company continues to use positive cash flows from operations to pay down its debt. Given management’s expectation that gross margin pressures would continued, we are trimming our EPS estimates by $0.05 for 2011, 2012 and 2013."

For an analyst ratings summary and ratings history on Summer Infant click here. For more ratings news on Summer Infant click here.

Shares of Summer Infant closed at $6.75 yesterday.

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