NEW YORK (TheStreet) -- Shares of 1-800-FLOWERS.com Inc. (FLWS - Get Report) are higher by 5.01% to $7.55 in late morning trading on Wednesday, after the company announced that it has closed its acquisition of Harry & David Holdings Inc., creating "a leading floral and gourmet gift retailer" worth over $1.1 billion in annual sales.
"The addition of the iconic Harry & David name to our growing family of great gifting brands, helps extend our position as a leading, omni-channel provider of gifts that resonate with our customers, making us a destination for all of their celebratory occasions. This combination will propel our total annual revenues to more than $1.1 billion and offers numerous opportunities to accelerate our top and bottom-line growth going forward," said company CEO Jim McCann.
As result of the Harry & David transaction, 1-800-FLOWERS said it's expecting its full year 2015 adjusted earnings results to between 45 cents to 50 cents per diluted share.
Analysts polled by Thomson Reuters are expecting earnings of 28 cents per share on $803 million in revenue for the year.
Separately, TheStreet Ratings team rates 1-800-FLOWERS.COM as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate 1-800-FLOWERS.COM (FLWS) a BUY. This is driven by a few notable strengths, 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, solid stock price performance, reasonable valuation levels, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- FLWS's revenue growth has slightly outpaced the industry average of 7.3%. Since the same quarter one year prior, revenues slightly increased by 8.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Powered by its strong earnings growth of 400.00% and other important driving factors, this stock has surged by 33.02% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, FLWS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet & Catalog Retail industry. The net income increased by 297.9% when compared to the same quarter one year prior, rising from -$1.72 million to $3.41 million.
- Net operating cash flow has significantly increased by 139.78% to $18.97 million when compared to the same quarter last year. In addition, 1-800-FLOWERS.COM has also vastly surpassed the industry average cash flow growth rate of 0.29%.
- You can view the full analysis from the report here: FLWS Ratings Report