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.
"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."
- You can view the full analysis from the report here: FRED Ratings Report