by Ian Harvey
November 18, 2019
Foot Locker will report earnings Friday before the market opens. The
consensus earnings estimate is for $1.07 per share on revenue of $1.94 billion;
but the Whisper number is higher at $1.10 per share.
Should you buy? Find out what to do?
FL, a retailer of shoes and apparel, is confirmed to report earnings at approximately 6:45 AM ET on Friday, November 22, 2019. The consensus earnings estimate is for $1.07 per share on revenue of $1.94 billion; but the Whisper number is higher at $1.10 per share.
Consensus estimates are for year-over-year earnings growth of 12.63% with revenue increasing by 4.30%.
For the last reported quarter, it was expected that Foot Locker would post earnings of $0.66 per share when it actually produced earnings of $0.66, delivering no surprise.
Over the last four quarters, the company has beaten consensus EPS estimates two times.
Short interest has decreased by 22.6% since the company's last earnings release.
Driving Factors to Affect Foot Locker.....
Foot Locker has been gaining from initiatives like managing inventory,
investing in digital platforms and improving supply-chain efficiencies, among
others. Further, the company’s focus on kids’ and women’s business,
shop-in-shop expansion in collaboration with vendors, store banner.com
business, and store refurbishment and enhancement of assortments have been
The company is also benefiting from its robust brand portfolio, solid e-commerce platform and growing direct-to-consumer operations. Further, the company’s focus on international expansion, particularly in Europe, has been a driver. We note that such upsides have been aiding the company’s comparable store sales (comps). In its last earnings call, management guided a mid-single-digit increase for third-quarter comps.
YOU NEED TO BE IN TO PROFIT!
Foot Locker has been assigned an average recommendation of “Buy” from the twenty-three analysts that are presently covering the company. Two investment analysts have rated the stock with a sell recommendation, five have given a hold recommendation and fifteen have issued a buy recommendation on the company.
The average twelve-month price target among brokerages that have updated their coverage on the stock in the last year is $55.38.
Susquehanna lifted its rating on Foot Locker to Positive from Neutral on its expectation for improved results for the second half of the fiscal year.
Analyst Sam Poser points to cited improved sales and product allocations of Jordan Retro, Puma, Adidas' Yeezy, Nike's 270 React and other Nike styles.
"Foot Locker is getting better access to key items than it did last year, as other retailers are either getting less or being shut out of some key items," he notes.
Susquehanna hiked its price target to $55 from $39.
Join us today and see what other future trades will be recommended!
Stock Options Made Easy “Earnings Predictions” members entered an options put trade on Foot Locker on August 23, when it last announced its earnings results. The earnings report was a bit dramatic but was great for us by providing a potential profit of 111%.
However, this time round we are expecting the trade to be on the positive side; therefore, a call option.
The questions remain.....
What will “Stock Options Made Easy” advise members to do?
AS ALWAYS THE DECISION IS YOURS!
An Important Note: That any suggestions for options trade considerations require investors/traders to use their own discretion as to when to enter or exit! As well, it is advisable to do further research and due diligence before executing your trade.
It is sometimes best to exit a trade, if there is already sufficient profit accrued, before an earnings report is presented. GREED can be the undoing of a nice profit!