Friday, June 8, 2007

Finish Line: Struggles Continue (FINL)

A few weeks I mentioned how Finish Line is currently struggling and will continue to struggle in the near future, well they just cut their 1st quarter estimate significantly. Analysts were estimating $.06 per share for the 1st quarter while the company guided $(.09) to $(0.11), which is a significant difference from the expected EPS. The Finish Line comparable store net sales continue to decrease and decreased 4.1% compared to the same quarter last year. Net Sales decreased 0.2% year over year.

On the bright side, even with this significant negative news, the stock only went down 3%. Seems like the market is at the point where any negative news from Finish Line is expected, and any neutral or positive news will send the stock higher.

What was surprising is that the company has so far failed to repurchase any shares in 2007 even though they still have shares left on their program that ends at the end of this year. They have repurchased shares at around this price in their current program. Does this mean they expect cheaper prices or they are running out of cash?

Disclosure: I don't have a position in FINL.

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