NEW YORK (TheStreet) --Shares of Hibbett Sports Inc. (HIBB - Get Report) are lower by -10.53% to $44.80 in pre-market trading on Friday, after the company lowered its outlook for the 2014 fiscal year.
The sporting goods retailer is now expecting to report earnings per diluted share between $2.63 and $2.73, compared to its previous guidance of $2.78 to $2.98.
Additionally, three firms lowered their ratings on Hibbett Sports.
Sterne Agee downgraded the company to “neutral” from “buy,” BMO Capital downgraded Hibbett to “market perform” from “outperform,” and Credit Suisse (CS - Get Report) lowered its rating to “underperform” from “neutral.”
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Separately, TheStreet Ratings team rates HIBBETT SPORTS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate HIBBETT SPORTS INC (HIBB) 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. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- HIBB's revenue growth has slightly outpaced the industry average of 0.5%. Since the same quarter one year prior, revenues slightly increased by 9.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- HIBB's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Specialty Retail industry average. The net income increased by 8.3% when compared to the same quarter one year prior, going from $26.21 million to $28.39 million.
- Net operating cash flow has significantly increased by 74.79% to $63.48 million when compared to the same quarter last year. In addition, HIBBETT SPORTS INC has also vastly surpassed the industry average cash flow growth rate of -3.20%.
- HIBBETT SPORTS INC has improved earnings per share by 9.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HIBBETT SPORTS INC reported lower earnings of $2.70 versus $2.72 in the prior year. This year, the market expects an improvement in earnings ($2.89 versus $2.70).
- You can view the full analysis from the report here: HIBB Ratings Report