Why Fred's (FRED) Stock Is Down Today

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.

 
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."

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

 

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