On Jul 9, 2013, Zacks Investment Research upgraded Kirkland’s Inc. (KIRK - Free Report) to a Zacks Rank #1 (Strong Buy) following an upbeat outlook for the second quarter of fiscal 2013.
Why the Upgrade?
In the second–quarter of fiscal 2013, Kirkland’s expects earnings per share to be between 75 cents and 85 cents. This is higher than the previous guidance range of 70 cents to 85 cents.
Kirkland raised its guidance following decent first quarter fiscal 2013 results (announced on May 28, 2013) which were way ahead of management’s guidance as well as the Zacks Consensus Estimate on the back of strong online sales during the quarter
Following the loss incurred in the second and third quarter of fiscal 2012, the surge in earnings in the last two quarters came as a relief to the investors of this Nashville, TN-based home décor retailer.
Moreover, management is optimistic about increased traffic and better same-store sales during the second quarter of fiscal 2013 due to increased consumer confidence due to rebound in the homebuilding sector, together with a drop in gasoline prices.
Estimates were mostly revised upwards following the encouraging first-quarter results and the upbeat outlook for the second quarter. For fiscal 2013 the estimate moved up 6.4% to 83 cents over the last 60 days. The Zacks Consensus Estimate for fiscal 2014 increased 4.4% to 97 cents over the same period.
Other Stocks to Consider:
Others players in the same industry which look attractive at the current levels include Fortune Brands Inc. (FBHS - Free Report) and Restoration Hardware (RH - Free Report) and Flower Foods Inc. (FLO - Free Report) , all carrying a Zacks Rank #1 (Strong Buy).