Five Below (FIVE) Guidance Mildly Disappointing Says Analyst
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Price: $213.67 +2.00%
Rating Summary:
26 Buy, 14 Hold, 0 Sell
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Today's Overall Ratings:
Up: 19 | Down: 31 | New: 16
Rating Summary:
26 Buy, 14 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 19 | Down: 31 | New: 16
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Yesterday Five Below (NASDAQ: FIVE) updated Q4 guidance, boosting EPS by a penny and raised its revenue guidance to $169-$172 million from $167-$170 million. Quarter-to date, the company reported comps of 4.2 percent.
Patrick McKeever, analyst with MKM Partners, called the results mildly disappointing considering the stock's valuation.
"Management didn't quantify the impact of the hurricane on 4Q12 sales, but we believe it was significant – may have shaved two to three percentage points from comps QTD. While this would put the implied ex-hurricane run rate in the 6%-7% range, it would still be a modest deceleration from 3Q12's 8.8% gain, albeit against a tougher comparison. For all of FY12, we continue to expect a 7% increase in same-store sales and look for moderation to the 5% area in FY13 against several years of tough comparisons," said McKeever.
Yesterday Five Below also announced a 7 million secondary offering. The offering is by Advent International and other selling shareholders. In McKeever's view, the offering is not a big surprise. Following the offering, Advent's ownership will be reduced from 50 percent to 38 percent.
MKM Partners has a Neutral rating on Five Below (NASDAQ: FIVE) with a price target of $32.00.
For an analyst ratings summary and ratings history on Five Below click here. For more ratings news on Five Below click here.
Shares of Five Below closed at $31.83 yesterday.
Patrick McKeever, analyst with MKM Partners, called the results mildly disappointing considering the stock's valuation.
"Management didn't quantify the impact of the hurricane on 4Q12 sales, but we believe it was significant – may have shaved two to three percentage points from comps QTD. While this would put the implied ex-hurricane run rate in the 6%-7% range, it would still be a modest deceleration from 3Q12's 8.8% gain, albeit against a tougher comparison. For all of FY12, we continue to expect a 7% increase in same-store sales and look for moderation to the 5% area in FY13 against several years of tough comparisons," said McKeever.
Yesterday Five Below also announced a 7 million secondary offering. The offering is by Advent International and other selling shareholders. In McKeever's view, the offering is not a big surprise. Following the offering, Advent's ownership will be reduced from 50 percent to 38 percent.
MKM Partners has a Neutral rating on Five Below (NASDAQ: FIVE) with a price target of $32.00.
For an analyst ratings summary and ratings history on Five Below click here. For more ratings news on Five Below click here.
Shares of Five Below closed at $31.83 yesterday.
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