Dillard's Inc. (DDS) recently announced its financial results for the first-quarter of fiscal 2011.
Street analysts had more than a week to ponder the news. In the paragraphs that follow, we cover the recent earnings announcement, subsequent analysts’ estimate revisions as well as the Zacks Rank and long-term recommendation on the stock.
Quarterly Review
Dillard's, a leading fashion apparel, cosmetics and home furnishings retailer, posted a record first-quarter 2011 earnings of $1.27 per share, outpacing the Zacks Consensus Estimate of 91 cents per share and prior-year quarter earnings of 69 cents per share.
On a reported basis, including one-time items, Dillard's reported earnings were $1.31 per share compared with the prior-year quarter's earnings of 68 cents per share.
Agreement of Analysts
In the last 7 days, none of the analysts have revised their estimates in either direction for the second quarter of fiscal 2011 and fiscal 2011.
Magnitude of Estimate Revisions
With no revision in estimates by any of the analysts in either direction, the estimates for the second quarter of fiscal 2011 and fiscal 2011 have remained static at 17 cents and $3.72, respectively.
Our Recommendation
Dillard's shares maintain a Zacks #1 Rank, which translates into a short-term Strong Buy rating. Our long-term recommendation on the stock remains Outperform.
Dillard's Inc. is a large departmental store chain, featuring fashion apparel and home furnishings. The company currently operates 306 stores and 9 clearance centers across 29 states, all under the Dillard’s brand name.
Moreover, the company benefits from its improvements in inventory management, focusing on more conservative purchasing and efforts to better match the timing of receipts with demand, which ultimately result in reduced markdowns.
However, the market has become more crowded as department stores, such as Macy's, Inc. (M) and J. C. Penney Company Inc. (JCP), continue to add merchandise that directly competes with Dillard’s upscale offerings.
About Earnings Estimate Scorecard
Len Zacks, PhD in mathematics from MIT, proved over 30 years ago that earnings estimate revisions are the most powerful force impacting stock prices. He turned this ground breaking discovery into two of the most celebrating stock rating systems in use today. The Zacks Rank for stock trading in a 1 to 3 month time horizon and the Zacks Recommendation for long-term investing (6+ months). These “Earnings Estimate Scorecard” articles help analyze the important aspects of estimate revisions for each stock after their quarterly earnings announcements. Learn more about earnings estimates and our proven stock ratings at: http://www.zacks.com/education/
DILLARDS INC-A (DDS): Free Stock Analysis Report
PENNEY (JC) INC (JCP): Free Stock Analysis Report
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