Canaccord Genuity Morning Coffee on Finish Line (FINL): Tripping Over...
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Price: $13.51 --0%
Rating Summary:
3 Buy, 22 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
3 Buy, 22 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity Morning Coffee on Finish Line (Nasdaq: FINL): Tripping over...
The Finish Line reported Q4/11 adjusted earnings of $0.81 per share, in line with Canaccord Genuity Consumer Products Analyst Camilo Lyon’s and consensus estimates. Stronger comps and gross margin were offset by faster SG&A dollar growth, resulting in 76 bps of deleverages. Q4/11 comps of 10.8% handily beat Lyon’s 7.7% estimate while e-commerce sales grew 38.3% contributing an estimated 2-3% to comp. Given the stronger reported Q4 comp, Lyon would have expected better flow through to EPS, yet the company continues to reinvest much of its comp strength back into growing its e-commerce platform. Quarter to date comps through March 25 of 10% came in ahead of his mid-single digit expectation; however, underwhelming Q1 and 2012 weighed on shares Friday. 2012 EPS is expected to grow mid-single digits while Q1 EPS is expected to be down 30% as the company continues to invest. Q1/12 EPS is now expected to be down 30% due to elevated levels of investment into its e-commerce platform, occupancy deleverage, and product margin compression. 2012 EPS growth is expected to be up mid-single digits implying a back-half weighted cadence to earnings. Management did say that 2013 earnings are expected to reaccelerate to low-mid teens growth after the investments begin to subside and returns on those investments begin to materialize.
The Finish Line reported Q4/11 adjusted earnings of $0.81 per share, in line with Canaccord Genuity Consumer Products Analyst Camilo Lyon’s and consensus estimates. Stronger comps and gross margin were offset by faster SG&A dollar growth, resulting in 76 bps of deleverages. Q4/11 comps of 10.8% handily beat Lyon’s 7.7% estimate while e-commerce sales grew 38.3% contributing an estimated 2-3% to comp. Given the stronger reported Q4 comp, Lyon would have expected better flow through to EPS, yet the company continues to reinvest much of its comp strength back into growing its e-commerce platform. Quarter to date comps through March 25 of 10% came in ahead of his mid-single digit expectation; however, underwhelming Q1 and 2012 weighed on shares Friday. 2012 EPS is expected to grow mid-single digits while Q1 EPS is expected to be down 30% as the company continues to invest. Q1/12 EPS is now expected to be down 30% due to elevated levels of investment into its e-commerce platform, occupancy deleverage, and product margin compression. 2012 EPS growth is expected to be up mid-single digits implying a back-half weighted cadence to earnings. Management did say that 2013 earnings are expected to reaccelerate to low-mid teens growth after the investments begin to subside and returns on those investments begin to materialize.
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