Finish Line Earnings: Here’s Why Investors are Excited Now

Finish Line Inc. (NASDAQ:FINL) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 6.56%.

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Finish Line Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 6.17% to $0.76 in the quarter versus EPS of $0.81 in the year-earlier quarter.

Revenue: Decreased 2.97% to $442.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Finish Line Inc. reported adjusted EPS income of $0.76 per share. By that measure, the company beat the mean analyst estimate of $0.75. It missed the average revenue estimate of $452.34 million.

Quoting Management: “While our fourth quarter performance was in-line with expectations, it was a challenging second half of the year for us,” commented Glenn Lyon, Chairman and Chief Executive Officer. “We experienced weakness in our running business at Finish Line and adjusted our operating platform and expenses to meet those market dynamics. Moving forward, we remain committed to our growth strategies and the investments required for our Finish Line, Macy’s and The Running Company businesses to drive long-term shareholder value. We are steadfast in our belief that technology will continue to drive broad changes in the retail landscape as we transform into a premier omni-channel retailer.”

Key Stats (on next page)…

Revenue increased 49.25% from $296.62 million in the previous quarter. EPS increased to $0.76 in the quarter versus EPS of $0.00 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.28 to a profit $0.24. For the current year, the average estimate has moved down from a profit of $1.65 to a profit of $1.48 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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