Zacks Reiterates “Underperform” Rating for Regis Corp. (RGS)
Regis Corp. (NYSE:RGS)‘s stock had its “underperform” rating restated by Zacks in a research report issued to clients and investors on Friday. They currently have a $13.00 target price on the stock. Zacks‘s price objective indicates a potential downside of 5.93% from the company’s current price.
Zacks’ analyst wrote, “Regis Corp.’s fiscal third-quarter 2014 adjusted loss of $0.15 was wider than the Zacks Consensus Estimate of a loss of $0.06 and compared unfavorably with the year-ago earnings of $0.01 per share. Cost savings initiatives and lower marketing costs could not offset the impact of weak same-store sales and an increase in depreciation expenses. Despite beating the consensus mark by 1.2%, revenues of $471.6 million went down 6.0% year over year due to weak same-store sales. Same-store sales declined 5.7% owing to a 6.7% decline in guest count. The company has been witnessing declining comps for the past few years due to a continued fall in guest count. We are concerned that the sluggish comps trend will continue to affect its performance until customer-visit patterns completely rebound. A limited consumer spending environment has also added to the woes. “
Shares of Regis Corp. (NYSE:RGS) traded down 0.51% on Friday, hitting $13.75. 37,707 shares of the company’s stock traded hands. Regis Corp. has a 52 week low of $11.48 and a 52 week high of $17.97. The stock has a 50-day moving average of $13.51 and a 200-day moving average of $13.87. The company’s market cap is $776.5 million.
Regis Corp. (NYSE:RGS) last issued its quarterly earnings data on Wednesday, April 30th. The company reported ($0.15) earnings per share for the quarter, missing the analysts’ consensus estimate of ($0.06) by $0.09. The company had revenue of $471.60 million for the quarter, compared to the consensus estimate of $468.06 million. During the same quarter last year, the company posted $0.01 earnings per share. Regis Corp.’s revenue was down 6.6% compared to the same quarter last year. On average, analysts predict that Regis Corp. will post $-0.12 earnings per share for the current fiscal year.
Regis Corporation business is engaged in owning, operating and franchising hair and retail product salons.
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