Monthly Archives: October 2015

RCII

26-Oct-15 16:05 ET
Rent-A-Center beats by $0.02, misses on revs; guides Q4 EPS below consensus; guides FY15 EPS below consensus  (25.78)
  • Reports Q3 (Sep) earnings of $0.47 per share, $0.02 better than the Capital IQ Consensus of $0.45; revenues rose 3.6% year/year to $791.6 mln vs the $802.73 mln Capital IQ Consensus.
  • Co issues downside guidance for Q4, sees EPS of $0.52-0.62 vs. $0.68 Capital IQ Consensus Estimate.
  • Co issues downside guidance for FY15, sees EPS of $2.00-2.10 vs. $2.15 Capital IQ Consensus Estimate.

Courtesy of Briefing.com

RCII reported on the 26th and guided down substantially for the next quarter and slightly for the year. This created a great opportunity for traders and investors.

There trailing earnings are 1.99 and at 17 bucks their P/E is 8.5. Projected earnings are 2.00 to 2.10 next year which puts their value at 30 bucks.

First target is 20.75 and then 23.50—23.50 could take some time.

Dave C

LCI

Although my target for LCI was 48.00 they guided higher late yesterday.

28-Oct-15 17:52 ET
Lannett sees Q1 revs of ~$106 mln vs $101.63 mln Capital IQ Consensus Estimate, adjusted EPS of $0.98-0.99 vs $0.90 Capital IQ Consensus Estimate  (46.46 +2.47)

Courtesy of Briefing.com

Sold LCI 49.25

Dave C.

SAVE

Buys SAVE at 34.88

27-Oct-15 06:10 ET
Spirit Airlines beats by $0.03, reports revs in-line; authorizes $100 new share repurchase program  (37.87)
  • Reports Q3 (Sep) earnings of $1.35 per share, $0.03 better than the Capital IQ Consensus of $1.32; revenues rose 10.6% year/year to $574.8 mln vs the $571.84 mln Capital IQ Consensus.
    • Adjusted pre-tax margin for the third quarter 2015 increased 560 basis points to 26.9 percent. On a GAAP basis, pre-tax margin for the third quarter 2015 increased 760 basis points to 26.9 percent.

Courtesy of Briefing.com

Trailing earnings on SAVE are 4.14. That gives us a P/E of 8.3. Definitely in the area that makes me a buyer.

On my prior buy on SAVE at 43.00 I sold half at at 44.50 and got stopped out on the rest for a 31 cent lose.

My target here is 44.50.

Support is at 32.90 and I will add there if needed.

FINL

25-Sep-15 07:13 ET
Finish Line reports EPS in-line, misses on top line; reaffirms FY16 guidance (EPS below estimates)  (24.77)
  • Reports Q2 (Aug) earnings of $0.57 per share, in-line with the Capital IQ Consensus of $0.57; revenues rose 3.5% year/year to $483.2 mln vs the $490.82 mln consensus.
    • Finish Line comparable store sales increased 1.5% vs. ests near +3.5%.
  • For FY16, the co still expects comparable store sales to be up in the low single to mid single digit range (consensus up ~4.3%) and EPS to increase in the low single to mid single digit range over fiscal year 2015 non-GAAP diluted earnings per share of $1.67 (consensus +7% to $1.48).

Courtesy of Briefing.com

23-Oct-15 09:41 ET
Skechers USA (-30%) leading shoe stocks lower, falls to five month low after missing sales estimates for the first time in two years  (32.03 -14.16)
Shoe stocks: FL -5%, DSW -5%, SHOO -4%, DECK -3%, UA -3%, FINL -2%, CRIX -2%, NKE -2%, GCO -1.6%, WWW -1%

Courtesy of Briefing.com

Skeckers (SKX) and Finish Line (FINL) are shoe stocks. This type of trade is called a sympathy trade for obvious reasons.

22-Oct-15 16:19 ET
Skechers USA misses by $0.12, misses on revs  (46.19 +0.49)
  • Reports Q3 (Sep) earnings of $0.43 per share, $0.12 worse than the Capital IQ Consensus of $0.55; revenues rose 27.0% year/year to $856.2 mln vs the $876.64 mln Capital IQ Consensus.

Courtesy of Briefing.com

Ever since FINL’s earnings call on Sept 25th I’ve been waiting for 17.20. SKX finally drove it down.

Trailing earnings are 1.73 which gives us a P/E of 10.1.

I bought FINL at 17.51 and will be very happy to add to this position at 17.11.

Dave C