Finish Line (FINL) has a Zacks #1 Rank and trades at 19.1x 2011 consensus EPS estimates.
Finish Line is decent growth and income play. Analysts estimate that FINL will deliver long-term EPS growth of 11.3% annually, and its stock has a current dividend yield of 1.0%.
Company Description
Finish Line operates as a mall-based specialty retailer in the U.S. It sells mens, womens, and childrens athletic, lifestyle, and outdoor footwear under the Finish Line brand name. It operates approximately 670 Finish Line stores in 47 states.
Fourth-Quarter Results
Finish Line reported fourth-quarter results on March 26.
Revenue grew 8.9% to $374.5 million with a same-store sales increased of 10%. Finish Line earned $0.61 per share, up 69.4% year-over-year and 13 cents ahead of expectations.
In the last three quarters, Finish Line has beaten the Zacks Consensus Estimate by an average of 44.0%.
Increasing EPS Estimates
Even before the company reported strong fourth-quarter results, analyst estimates were headed higher. In the last 30 days, the Zacks Consensus Estimate for fiscal 2011 is up 4 cents, or 4.9%, and the fiscal 2012 Zacks Consensus Estimate is up 11 cents, or 11.0%.
It is still too soon for the consensus estimates to reflect the company’s recent earnings report. But, when those estimates are updated, FINL’s consensus EPS estimates should be headed higher.
Industry Comparisons
Finish Line compares favorably to its industry peers.Its trailing-twelve month net profit margin is 3.0% versus the industry average of 1.8%. Its return on equity is 10.4%, above the industry’s 8.0%. Lastly, Finish Line has a dividend yield of 1.0%, compared to the industry average of 0%.
