Finish Line Inc (NASDAQ: FINL)
Finish Line stock is having a great day in the market today after the athletic shoe and sports apparel retailer produced higher earnings than expected. Today, we’ll take a look at the company’s earnings, what the CEO had to say about the earnings, and what we can expect moving forward. So, let’s get right to it…
Finish Line Produces A Solid Earnings Report
As expected, FINL produced their earnings results for the first fiscal quarter of 2016 before the market open today; and the results were overwhelmingly positive. In the quarter, non-GAAP earnings came in at $0.30 per share; far exceeding the $0.24 per share analysts were expecting to see. Top line revenue also beat analyst expectations. While the analysts expected to see $430.84 million in top line revenue for the quarter, the company generated $443.4 million. All in all, the first quarter report was just what investors needed to see. Here’s what the company’s CEO, Glenn Lyon had to say about the productivity in the quarter…
“Fiscal 2016 is off to a solid start… We’re delivering an enhanced customer experience with our commitment to offering the latest and greatest merchandise assortments and providing world class service. We will continue to drive consistent growth and increased profitability across each of our divisions with focus on our customer-centric operating model. We are confident these strategies will translate into greater value for our shareholders over the long-term”
How The Market Reacted To The News
As we’ve come to expect any time we hear positive news about a stock, the market has had an incredibly positive reaction. Currently (1:12), FINL is trading at $28.17 per share after a gain of 4.33% so far today; and the uptrend seems like it is likely to last for some time.
What We Can Expect From FINL Moving Forward
Moving forward, I’ve got a relatively bullish opinion of Finish Line stock. Here’s what I see happening moving forward.
Short Term – In the short run, I’m expecting to see a bit of a correction from gains on Monday. Keeping in mind that the movements in the market happen in a series of overreactions, it only makes sense that declines would come after gains. Nonetheless, if you’re looking for an opportunity to get in on the long term growth, it may be a great idea to buy the dips; as Tuesday, we’re likely to see more growth from the stock.
Long Term – In the long run, I’m expecting to see overwhelmingly positive moves from FINL. The reality is that for the last several quarters, the company has been able to exceed growth expectations. Considering the fact that investors invest for growth, it only makes sense that this is a stock that’s likely to keep investors excited for the long run. So, as mentioned above, keep an eye out for dips as they are likely to prove to be incredible buying opportunities.
What Do You Think?
Where do you think FINL is headed and why? Let us know in the comments below!