Guggenheim just raised the rating of this retailer’s shares to ‘Buy’. In the past 30 days, 19 analysts have increased their earnings forecasts for the company for 2017 and 14 for 2018.
Buy: Foot Locker (FL)
From Dow Theory Forecasts
Foot Locker (FL) earned $1.37 per share excluding special items in the January quarter, up 18% and $0.05 above the consensus. Total revenue increased 5% to $2.11 billion, while same-store sales rose 5.0%. Results benefited from higher prices. Management also reported a rise in store traffic, something of an anomaly in the current retail landscape.
Foot Locker expects per-share profits to climb at least 10% in fiscal 2018 ending January, while same-store sales are projected to increase at a mid-single-digit rate. That guidance implies minimum per-share profits of $5.42, above the consensus of 5.27.
Despite strong product demand, management conceded that growth will likely be less steady this year. This is largely due to delays in tax refunds, expected to push more sales into the July quarter that would normally occur in the April quarter. Foot Locker shares surged 9% on the report and remain a Buy and a Long-Term Buy.
Richard J. Moroney, CFA, Dow Theory Forecasts, www.dowtheory.com, 800-233-5922, March 6, 2017