Barclays Maintains an 'Overweight' on The Children's Place (PLCE); 3Q 2011 Earnings Review
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Price: $2.49 +2.47%
Rating Summary:
11 Buy, 13 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
11 Buy, 13 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Barclays maintains an 'Overweight' on The Children's Place (NASDAQ: PLCE) price target of $63.00.
Barclays analyst says, "PLCE reported 3Q 2011 EPS of $1.33, better than our estimate and consensus of $1.29. The $0.04 beat was due to higher revenues, a slightly higher gross margin partially offset by higher SG&A expense and depreciation, and a lower tax rate. Management provided guidance for Q4/11 of $1.19-$1.24 based on a flat to slightly positive comp. For FY 2011, PLCE raised the guidance range to $3.24-$3.29 from $3.13-$3.25. We are maintaining our Q4 2011 EPS estimate of $1.31, raising 2011 by the 3Q beat to $3.37, and raising 2012 to $4.20 from $4.00."
"We see CEO Jane Elfers' new management team driving a successful turnaround to capture the strong margin potential in this story and we believe a double-digit operating margin is possible over time. While the environment is tough, better product, more rational inventory purchases, improved allocation, the changed outlet strategy, a growing direct business , and well thought out real estate strategy should drive a meaningful improvement in margin over time. We think PLCE's differentiation of big girls and little girls is working, that the fashion is improving, and that better inventory management is making a large impact."
For an analyst ratings summary and ratings history on The Children's Place click here. For more ratings news on The Children's Place click here.
Shares of The Children's Place closed at $51.81 yesterday.
Barclays analyst says, "PLCE reported 3Q 2011 EPS of $1.33, better than our estimate and consensus of $1.29. The $0.04 beat was due to higher revenues, a slightly higher gross margin partially offset by higher SG&A expense and depreciation, and a lower tax rate. Management provided guidance for Q4/11 of $1.19-$1.24 based on a flat to slightly positive comp. For FY 2011, PLCE raised the guidance range to $3.24-$3.29 from $3.13-$3.25. We are maintaining our Q4 2011 EPS estimate of $1.31, raising 2011 by the 3Q beat to $3.37, and raising 2012 to $4.20 from $4.00."
"We see CEO Jane Elfers' new management team driving a successful turnaround to capture the strong margin potential in this story and we believe a double-digit operating margin is possible over time. While the environment is tough, better product, more rational inventory purchases, improved allocation, the changed outlet strategy, a growing direct business , and well thought out real estate strategy should drive a meaningful improvement in margin over time. We think PLCE's differentiation of big girls and little girls is working, that the fashion is improving, and that better inventory management is making a large impact."
For an analyst ratings summary and ratings history on The Children's Place click here. For more ratings news on The Children's Place click here.
Shares of The Children's Place closed at $51.81 yesterday.
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