Needham & Company Downgrades Summer Infant (SUMR) to Hold; Weak 1Q Report; Stock to Bottom Out
Tweet
Share
E-mailGet Alerts SUMR Hot Sheet
Price: $11.99 --0%
Rating Summary:
5 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 1 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Join SI Premium – FREE
Needham & Company downgraded Summer Infant (NASDAQ: SUMR) from Strong Buy to Hold.
Analyst, Sean M. cGowan, said, "SUMR reported 1Q results far below our expectations and consensus estimates. We expected sales of $67 mm (up 14.6% YoY); actual sales were $63.0 mm—growth of 7.8%. Consensus called for sales of $68.9 mm. EPS were $0.07 versus our estimate of $0.13, which was slightly below consensus of $0.15. Management cited continued retailer inventory reductions and greater than expected promotional activity as the primary causes for the shortfall, and reduced its guidance for sales and EPS, but says it expects 2H improvements. While we believe the second half will see improvements, as reflected in our reduced estimates, we are troubled by the magnitude and speed of the deterioration in SUMR’s 2012 prospects. Because we cannot confidently project when the factors contributing to the shortfall will reverse themselves, we downgrade the stock."
Needham lowers FY12 from $0.55 to $0.45, FY13 from $0.75 to $0.60 and FY14 from $0.95 to $0.75.
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 $4.81 yesterday.
Analyst, Sean M. cGowan, said, "SUMR reported 1Q results far below our expectations and consensus estimates. We expected sales of $67 mm (up 14.6% YoY); actual sales were $63.0 mm—growth of 7.8%. Consensus called for sales of $68.9 mm. EPS were $0.07 versus our estimate of $0.13, which was slightly below consensus of $0.15. Management cited continued retailer inventory reductions and greater than expected promotional activity as the primary causes for the shortfall, and reduced its guidance for sales and EPS, but says it expects 2H improvements. While we believe the second half will see improvements, as reflected in our reduced estimates, we are troubled by the magnitude and speed of the deterioration in SUMR’s 2012 prospects. Because we cannot confidently project when the factors contributing to the shortfall will reverse themselves, we downgrade the stock."
Needham lowers FY12 from $0.55 to $0.45, FY13 from $0.75 to $0.60 and FY14 from $0.95 to $0.75.
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 $4.81 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Coherent (COHR) PT Raised to $420 at Needham
- Needham Downgrades DoubleVerify (DV) to Hold
- Piper Sandler Reiterates Overweight Rating on Estee Lauder (EL), 'F4Q26 Preview'
Create E-mail Alert Related Categories
Analyst EPS Change, Analyst EPS View, DowngradesRelated Entities
Needham & CompanySign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
