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TheStreet Open House

Why Fred's (FRED) Stock Is Down Today

Stocks in this article: FRED

NEW YORK (TheStreet) -- Fred's (FRED) issued an update to its second quarter earnings guidance today projecting a quarterly loss of -15 cents per share to -20 cents per share, compared to the Thomson Reuters analysts' estimate of six cents per share.

Shares of Fred's are down -3.57% to $15.94.

The southeastern U.S. discount retailer said it expects to report a loss in the second quarter, citing vendor-related cost pressures on pharmacy sales and transitional costs from the company's convenience center model.

Must Read: Warren Buffett's 25 Favorite Stocks

 
The company issued revenue guidance of $490.6 million, compared to the consensus revenue estimate of $487.87 million. Fred's reports second quarter results August 28.
 
TheStreet Ratings team rates FREDS INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate FREDS INC (FRED) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. Among the primary strengths of the company is its solid financial position based on a variety of debt and liquidity measures that we have evaluated. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."

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