Hibbett Sporting Goods' (HIBB) earnings of $0.59 per share for the third quarter ended October 2011 beat the Zacks Consensus Estimate of $0.51 and surged 34% from the prior-year quarter on the heels of robust performance of footwear and apparel sales along with operational efficiencies. Management has raised its earnings guidance for the current fiscal year to a range of $2.05 to $2.11 a share.
Management also remains committed to expanding the store network. Moreover, Hibbett's sharp focus on mid-sized and smaller markets and strategic mix of branded as well as localized merchandise provide an edge over its rivals. Also, the company has a healthy balance sheet with no bank debt.
Our long-term Outperform recommendation on the stock indicates that it would perform well above the market. Our target price of $47.00, 22.2x 2011 EPS, reflects this view.
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