
Foot Locker (FL) Stock Higher Ahead of Friday's Earnings Results
NEW YORK (TheStreet) -- Shares of Foot Locker (FL) - Get Report are rising by 2.27% to $60.88 in midday trading on Wednesday afternoon, as the company prepares to release its latest quarterly earnings results this week.
The athletic shoes and apparel retailer is scheduled to release its 2015 third quarter earnings results before the market open on Friday morning.
Analysts are expecting the New York City-based company to report a year over year rise in both its earnings per share and revenue results for the most recent quarter.
Foot Locker has been forecast to post earnings of 95 cents per share on revenue of $1.78 billion, by analysts surveyed by Thomson Reuters, for the three month period ended in October.
The company's earnings came in at 82 cents per share on revenue of $1.73 billion for the 2014 third quarter. The company's 2014 third quarter earnings and revenue had improved when compared to the 2013 quarter.
Separately, TheStreet Ratings team rates FOOT LOCKER INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
We rate FOOT LOCKER INC (FL) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- FOOT LOCKER INC has improved earnings per share by 33.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, FOOT LOCKER INC increased its bottom line by earning $3.56 versus $2.85 in the prior year. This year, the market expects an improvement in earnings ($4.20 versus $3.56).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Specialty Retail industry average. The net income increased by 29.3% when compared to the same quarter one year prior, rising from $92.00 million to $119.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.6%. Since the same quarter one year prior, revenues slightly increased by 3.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- FL's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- You can view the full analysis from the report here: FL
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.








