Finish Line Shares Popped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Finish Line (NAS: FINL) is sprinting ahead by as much as 14% today after the company reported quarterly earnings ahead of Wall Street estimates last night.

So what: On Thursday, the company put up second-quarter revenue of $331.5 million, a 10% increase, while net income came in at $20.9 million, or $0.39 per share. Street analysts were looking for earnings per share of $0.38 on $321.9 million in sales. Comparable-store sales rose by a healthy 11% and sit at 9% so far this month through Sept. 19.

Now what: Similarly, fellow sporting-apparel maker Nike (NYS: NKE) also reported better-than-expected earnings, adding some bullishness to the sector and boosting names like lululemon athletica (NAS: LULU) and Under Armour (NYS: UA) . Finish Line is looking to expand through acquisitions and recently acquired an 18-store chain of specialty running shops for roughly $8.5 million. The company expects online sales and heavy demand for its lightweight running shoes to continue to benefit its margins in the coming quarter. With fears of a double-dip recession dominating headlines, having a handful of retailers coming in above expectations is one of a few bright spots amidst all the rampant pessimism of late.

Interested in more info on Finish Line? Add it to yourwatchlist.

At the time this article was published Fool contributorEvan Niuowns shares of lululemon athletica, but he holds no other position in any company mentioned. Check out hisholdings and a short bio. The Motley Fool owns shares of Under Armour and lululemon athletica.Motley Fool newsletter serviceshave recommended buying shares of Nike, lululemon athletica, and Under Armour and creating a diagonal call position in Nike. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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