Wedbush Cuts Price Target on Fred's (FRED), Anticipates Lower Second Half 2011 Guidance
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Price: $0.13 --0%
Rating Summary:
2 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
Rating Summary:
2 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 11 | Down: 18 | New: 17
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Wedbush is reaffirming its Neutral rating on shares of Fred's Inc. (NASDAQ: FRED) while lowering its price target from $14 to $12.50 ahead of its second quarter earnings.
The company is expected to report its second quarter earnings on August 25 before the opening bell and is scheduled to host a conference at 7:00am P.T..
The firm is forecasting that Fred's will report disappointing second quarter results and currently estimates $453 million in revenue and EPS of $0.13 for the quarter.
With first quarter sales falling below expectations and the company per-announcing that second quarter comps were down 0.4 percent and sales were only up by 1 percent, which were both below the company's guidance and firms expectations, it is very clear that Fred's lower income customer base is experiencing the economic downturn head on.
Fred’s was going to launch a successful turnaround by implementing a number of new initiatives to differentiate itself for the near and long term, but due to significant headwinds from the macro environment this year it has been unable to. This worries Wedbush as it raises the question on the economic health of company's core customer, and the implications for future spending trends.
For fiscal 2011, Wedbush currently forecasts revenue and EPS of $1.887 billion and $0.84. For fiscal 2012, the firm estimates $2.031 billion in revenue and EPS of $1.01.
For more ratings news on Fred\'s Inc. click here and for the rating history of Fred\'s Inc. click here.
Shares of Fred\'s Inc. closed at $10.78 yesterday.
The company is expected to report its second quarter earnings on August 25 before the opening bell and is scheduled to host a conference at 7:00am P.T..
The firm is forecasting that Fred's will report disappointing second quarter results and currently estimates $453 million in revenue and EPS of $0.13 for the quarter.
With first quarter sales falling below expectations and the company per-announcing that second quarter comps were down 0.4 percent and sales were only up by 1 percent, which were both below the company's guidance and firms expectations, it is very clear that Fred's lower income customer base is experiencing the economic downturn head on.
Fred’s was going to launch a successful turnaround by implementing a number of new initiatives to differentiate itself for the near and long term, but due to significant headwinds from the macro environment this year it has been unable to. This worries Wedbush as it raises the question on the economic health of company's core customer, and the implications for future spending trends.
For fiscal 2011, Wedbush currently forecasts revenue and EPS of $1.887 billion and $0.84. For fiscal 2012, the firm estimates $2.031 billion in revenue and EPS of $1.01.
For more ratings news on Fred\'s Inc. click here and for the rating history of Fred\'s Inc. click here.
Shares of Fred\'s Inc. closed at $10.78 yesterday.
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