Nomura Securities Maintains a 'Reduce' on Pacific Sunwear (PSUN); Q2 Win, But B-T-S Slow
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Price: $0.04 --0%
Rating Summary:
3 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 6 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Reduce' on Pacific Sunwear of California (NASDAQ: PSUN) price target of $1.00.
Analyst, Paul Lejuez, said, "2Q comps improved to +5% (vs +1% in 1Q) and merchandising margin was +260bp. Off very depressed levels, these are small wins, but wins nonetheless. However, in 3Q they have seen a “softer start to BTS”. 2Q EPS was ($0.08) vs our estimate of ($0.10), consensus of ($0.12), and mgmt (non-GAAP) guidance of ($0.11)-($0.16). Sales +5%, comps +5% and EBIT margin up 590bp, driven by GM up 450bp and SG&A leverage of 150bp. We are increasing our F12E EPS from ($0.42) to ($0.40) and our F13E EPS from ($0.13) to ($0.08). We forecast EBITDA of $0 in F12. The longer-term issue is that even if they can turn the business around, the stores have been starved of capital, so any improvement in operating CF will likely get offset by increases in capex."
For an analyst ratings summary and ratings history on Pacific Sunwear of California click here. For more ratings news on Pacific Sunwear of California click here.
Shares of Pacific Sunwear of California closed at $2.17 yesterday.
Analyst, Paul Lejuez, said, "2Q comps improved to +5% (vs +1% in 1Q) and merchandising margin was +260bp. Off very depressed levels, these are small wins, but wins nonetheless. However, in 3Q they have seen a “softer start to BTS”. 2Q EPS was ($0.08) vs our estimate of ($0.10), consensus of ($0.12), and mgmt (non-GAAP) guidance of ($0.11)-($0.16). Sales +5%, comps +5% and EBIT margin up 590bp, driven by GM up 450bp and SG&A leverage of 150bp. We are increasing our F12E EPS from ($0.42) to ($0.40) and our F13E EPS from ($0.13) to ($0.08). We forecast EBITDA of $0 in F12. The longer-term issue is that even if they can turn the business around, the stores have been starved of capital, so any improvement in operating CF will likely get offset by increases in capex."
For an analyst ratings summary and ratings history on Pacific Sunwear of California click here. For more ratings news on Pacific Sunwear of California click here.
Shares of Pacific Sunwear of California closed at $2.17 yesterday.
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