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: Shares of athletic footwear retailer Finish Line (NAS: FINL) climbed 10% on Friday after its quarterly results and full-year outlook topped Wall Street expectations.
So what: Although Finish Line's first-quarter profit sank 25% on higher costs, it still managed to squeak past estimates (EPS of $0.24 versus the consensus of $0.23), reigniting hopes of a turnaround going forward. The stock has been beaten up over the past few months on concerns over slowing growth, but higher digital sales and signs of steady running shoe demand seem to be easing some of those worries.
Now what: Management said it expects full-year EPS to grow 6%-7% and also reaffirmed its longer-term targets. "While we are still in the early stages of a multi-year transformation," said Chairman and CEO Glenn Lyon, "I have great confidence in this organization's ability to successfully deliver on our near-term promises while at the same time remain on a strategic course toward $2 billion in total company sales and $2.50 in earnings per share by fiscal 2016." More important, with the stock still off roughly 20% from its 52-week high and sporting a PEG of 0.8, there might be time to bet on that long-term bullishness.
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The article Why Finish Line Shares Popped originally appeared on Fool.com.
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