Earnings Preview: The Finish Line, Inc.

| About: The Finish (FINL)

Company Profile

The Finish Line, Inc., together with its subsidiaries, operates as a mall-based specialty retailer in the United States. It operates Finish Line stores that offer performance and athletic casual footwear, apparel, and accessories for men, women, and kids.

Finish Line Inc (NASDAQ:FINL) is scheduled to report its first quarter earnings results on June 29, 2012, before the market open.

Technical Overview

click to enlarge all images

Finish Line has a market cap of $996.59 million and it is currently trading around $19.18 with a 52 week range of $16.25 to $26.09. The stock has fallen 0.54% year to date. The following table provides the key financial ratios for Finish Line:

Key Ratio Value
Current Ratio 3.99
PEG 0.82
P/E 11.99
Forward P/E 10.26
Profit Margin 6.19%
Return On Assets (ROA) 12.32%
Return On Equity (ROE) 16.50%

Recent News

  • On May 30, 2012, Building on the recent announcement of its new partnership with Special Olympics, The Finish Line, Inc. and its Finish Line Youth Foundation announced that more than 200 Finish Line employees from Indiana will volunteer onsite June 1 at the Special Olympics Indiana Summer Games.
  • On May 1, 2012, The Indiana Economic Development Corporation, together with Finish Line announced the company's plans to expand its operations here, creating up to 327 new jobs by the end of 2015.
  • On April 18, 2012, Finish Line announced that its board of directors has declared a quarterly cash dividend of $0.06 per share of outstanding Class A and Class B common stock. The quarterly cash dividend will be payable June 18, 2012 to shareholders of record as of June 1, 2012.
  • On April 17, 2012, Finish Line and its Finish Line Youth Foundation announced a multi-year pledge to support Special Olympics as part of the retailer's ongoing mission to celebrate the everyday achievements of athletes everywhere.
  • On March 30, 2012, Finish Line announced that Gart Capital Partners (NYSE:GCP) is making a $10 million strategic investment in Finish Line's Running Specialty Group with the goal of creating the nation's single largest operator within the growing specialty running business, a market that has been estimated at up to $1 billion. Finish Line remains majority owner of the Running Specialty Group.

Here's a list of recent changes to analyst ratings:

  • On May 31, 2012, Sterne Agee downgraded Finish Line from BUY to NEUTRAL with a price target of $25.00.
  • On April 20, 2012, Benchmark initiated coverage on Finish Line with a BUY rating and set the price target as $27.00.
  • On April 13, 2012, Janney Capital's Eric Tracy initiated coverage on Finish Line with a BUY rating and set the price target as $25.00.
  • On March 30, 2012, Susquehanna's Christopher Svezia downgraded Finish Line from POSITIVE to NEUTRAL and lowered the price target from $29.00 to $24.00.

Analyst Guidance and Earnings History

The first quarter revenues are expected to be $320.07 million when compared to $299.47 million for the same quarter last year. Earnings per share for the first quarter are expected to be 23 cents a share, down from a 30 cents a share in the year-ago period.

The average price target from analysts for Finish Line is $26.23 with an average rating of BUY

Out of the last 4 quarters, Finish Line has met or exceeded the EPS estimates all 4 times. The following chart shows the Analyst estimates history and the actual EPS results:

The following chart shows the annual summary of Sales and Net income for Finish Line:


Collective Brands Inc (NYSE:PSS), Shoe Carnival Inc (NASDAQ:SCVL), Foot Locker Inc (NYSE:FL) and Dick'S Sporting Goods Inc (NYSE:DKS) are considered as major competitors for Finish Line and the table below provides the key metrics for these companies:

Price $19.18 $21.35 $20.40 $29.83 $48.58
52 Week Price -15.99% 43.55% 7.37% 27.04% 32.08%
Market Capitalization $1.0B $1.3B $416.71M $4.5B $5.6B
Earnings per Share 1.59 -2.57 1.35 2.03 2.25
Total Revenue $1.4B $3.5B $786.7M $5.7B $5.4B
Employees (Full-Time) 3500 14100 1800 13080 10400

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Nasdaq, Finviz and investor sites.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.

Additional Disclosure: I change my positions very frequently and may initiate either long or short positions in the above mentioned stocks at any time.

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in FINL over the next 72 hours.

About this article:

Author payment: $35 + $0.01/page view. Authors of PRO articles receive a minimum guaranteed payment of $150-500. Become a contributor »
Tagged: , Apparel Stores, Earnings
Problem with this article? Please tell us. Disagree with this article? .