Fred's Receives Underperform Rating from Zacks (FRED)
Fred's (NASDAQ:FRED)‘s stock had its “underperform” rating reaffirmed by Zacks in a note issued to investors on Wednesday. They currently have a $14.00 target price on the stock. Zacks‘s price target would indicate a potential downside of 7.47% from the company’s current price.
Zacks’ analyst wrote, “Fred’s Inc.’s first-quarter fiscal 2014 earnings of $0.17 missed both the Zacks Consensus Estimate and year-ago results by 19.04% and 45.2%, respectively. The first-quarter results also missed the company’s expected range of 18 to 22 cents due to lower than expected comps in all the months of the quarter. Net sales slipped 0.1% year over year in spite of beating Zacks Consensus Estimate marginally. The company’s same-store sales went up 1.9% during the quarter, poorer than the year ago period. Moreover, lack of international presence increases Fred’s vulnerability to macroeconomic and industrial headwinds. High dependence on pharmacy department also remains an overhang.”
Shares of Fred's (NASDAQ:FRED) traded down 0.23% on Wednesday, hitting $15.095. The stock had a trading volume of 63,629 shares. Fred's has a one year low of $14.54 and a one year high of $21.05. The stock’s 50-day moving average is $17.20 and its 200-day moving average is $17.86. The company has a market cap of $552.6 million and a price-to-earnings ratio of 26.73.
Fred's (NASDAQ:FRED) last released its earnings data on Thursday, May 29th. The company reported $0.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.20 by $0.03. The company had revenue of $498.30 million for the quarter, compared to the consensus estimate of $501.64 million. During the same quarter in the previous year, the company posted $0.31 earnings per share. The company’s revenue for the quarter was down .6% on a year-over-year basis. Analysts expect that Fred's will post $0.63 EPS for the current fiscal year.
The company also recently announced a quarterly dividend, which is scheduled for Monday, June 16th. Shareholders of record on Monday, June 2nd will be paid a dividend of $0.06 per share. This represents a $0.24 annualized dividend and a dividend yield of 1.59%. The ex-dividend date is Thursday, May 29th.
Several other analysts have also recently commented on the stock. Analysts at Wedbush reiterated a “neutral” rating on shares of Fred's in a research note on Friday, May 30th. They now have a $12.00 price target on the stock, down previously from $14.00. Separately, analysts at BB&T Corp. downgraded shares of Fred's from a “buy” rating to a “hold” rating in a research note on Friday, May 30th. Finally, analysts at Trading Central downgraded shares of Fred's from a “buy” rating to a “neutral” rating in a research note on Tuesday, April 15th. One investment analyst has rated the stock with a sell rating and six have assigned a hold rating to the company. Fred's currently has an average rating of “Hold” and a consensus price target of $14.50.
Fred’s, Inc is engaged in the sale of general merchandise through its retail discount stores and full-service pharmacies.
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