HOME ZACKS RESEARCH FUNDS PORTFOLIO BROKER RESEARCH MARKETS SCREENING EDUCATION SERVICES
Zacks Rank    Equity Research    Premium Home    My Account    Help    

Profit from the Pros – Zacks Free Email Newsletter
Our free email newsletter is filled with timely stock picks and market commentary. Sign up for free. Already on board? Check out the archive.
Quote:
Login Free Membership
Search:

 
Analyst Blog  

Hibbett Headwinds Too Heavy

November 26, 2008 | Comments: 0
Recommended this article (1)
Print    Share

Hibbett Sports, Inc. (HIBB - Analyst Report) operates sporting goods stores that are around 5,000 square feet in small to mid-sized markets in the Southeast, Mid-Atlantic and Midwest. The company's stores offer athletic equipment, footwear, and apparel.

Hibbett's third quarter earnings per share were $0.01 below consensus estimates, but the company raised its full-year EPS guidance from $0.93-$1.03 to $0.97-$1.04. Hibbett's have held up reasonably well this year, despite the challenging retail environment. The company's results have been boosted by the company's continued store expansion, share buybacks and easy comparables in fiscal 2008.

Looking ahead to next year, the company should open another 60-70 stores, but it will not be buying back shares, and comps from fiscal 2009 are much better than last year. That means EPS growth will have to come from stronger sales trends and/or higher profit margins. We don't see either of those occurring in this difficult retail environment.

We reiterate our Sell rating on Hibbett Sports. Our six-month target price is $9.50, or 10x our fiscal 2010 EPS estimate.

Read the full analyst report on HIBB.


Email

Print

Share

RSS

Rate Pos

Rate Neg

Comment
Read/Post Comments (0) | Recommended this article (1)
 Posting Comment...
There was a problem posting this this comment. Please try back later.
[CLICK TO CLOSE X]
Comments (Limit 1000 Characters - Used: 0)
Display Name: Email Address:  
 Loading Comments...
Be the first to comment on this article!
Best Stocks. Best Insight. Join Now...it's FREE!
Over 550,000 investors look forward to the timely insights in our email newsletter; Zacks Profit from the Pros. In each daily issue you will find:
  • Free  Four Zacks #1 Rank "Strong Buy" Stocks
  • Free  Timely Market Commentary
  • Free  Wealth Management Tips
  • Free  Profitable Strategy Screens
  • Free  Bull and Bear Stocks of the Day
Zacks FREE Registration

More Zacks Resources

Market Summary Nov 22, 2009 13:12 pm ET
DJIA 10318.16  -14.28 -0.14%
NASD 2146.04  -10.78 -0.50%
S&P 500 1091.38  -3.52 -0.32%
Sponsored Links