News Breaks
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| 10:37 EDT |  | PSUN |
| theflyonthewall.com: | Pacific Sunwear plummets after guidance, commentary disappoint investors | | Apparel retailer Pacific Sunwear (PSUN) reported Q3 EPS of (17c), compared with analysts' consensus estimate of (20c). However, the retailer provided Q4 EPS guidance of (28c)-(35c), compared with the consensus of (11c). Pacific Sunwear predicted that its same-store sales would drop in the low-20% range in Q4. The company explained that its sales have declined sharply since the last two weeks of its third quarter. A number of firms responded to the retailer's weaker than expected guidance and downbeat commentary by reducing their targets on the shares. Two FBR Capital analysts lowered their target on the stock to $6 from $9. The firm now believes that it will take longer for the company's products to improve than it had previously anticipated. FBR Capital predicts that the company's weak sales trends could continue as it may try to offer sharp discounts in order to clean out its inventories heading into Spring. However, the firm thinks there could be some support for the stock at current levels, and it believes that patient, deep-value investors could be interested in Pacific Sunwear. The firm maintains an Outperform rating on the stock. In early trading, Pacific Sunwear sank $1.56, or 31.14%, to $3.45. :theflyonthewall.com |
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