Rocky Brands (RCKY) and Red Robin (RRGB) - Zacks #1 Rank Top Performers
May 31 2011 - 8:00PM
Zacks
Rocky Brands, Inc. (RCKY) moved through Wednesday's session
as if the market hadn't been kneecapped by some disturbing economic
news. It was almost like the Dow, S&P and NASDAQ didn't each
decline by more than 2%.
Shares for the retailer gained more than 6% when all was said
and done, making it THE top-performing Zacks #1 Rank stock.
Meanwhile, volume surpassed 57,000 shares, compared to the daily
average of around 36,600.
RCKY is a leading designer, manufacturer and marketer of premium
quality footwear and apparel marketed under a portfolio of well
recognized brand names, including Rocky®, Georgia Boot®, Durango®,
Lehigh®, and the licensed brands Michelin® and Mossy Oak®.
Rocky Brands is part of the shoes & related apparel
industry. There is only one other name from this space on today's
Zacks #1 Rank List: Adidas AG (ADDYY). Another similar
company with a Zacks #1 Rank is Foot Locker, Inc. (FL).
The company is not exactly well-represented when it comes to
analyst coverage. In fact, there are only 2 estimates for RCKY.
Nonetheless, expectations for this year and next have advanced in
the past 60 days.
The Zacks Consensus Estimate for 2011 is $1.42 per share, which
is up 10% from 2 months ago. Meanwhile, the Zacks Consensus
Estimate for 2012 is $1.61 per share, up 13.4% in 60 days. At the
moment, analysts expect profit growth of more than 13% for next
year over this year.
In late April, Rocky Brands announced its seventh straight
quarter with a positive EPS surprise. Furthermore, the company
returned to profitability after a loss per share in the year-ago
quarter.
First-quarter earnings per share of 7 cents soared past the
Zacks Consensus Estimate by more than 215%. However, sales of $52.3
million were down from the previous year's $56.1 million due to
reduced sales under military contracts.
The company attributed this profitable quarter to higher margin
sales, its improved operating platform and significantly lower
interest expense. It expects such trends to continue fueling
earnings for the rest of the year.
Red Robin Gourmet Burgers, Inc. (RRGB) is technically in
retail too, but it is 180 degrees different than RCKY. However, one
similarity between the two (on Wednesday at least) was their strong
performances during a difficult session.
RRGB was right behind RCKY today with a gain of about 3.2%. More
than 650,000 shares changed hands during the session, compared to a
daily average of around 372,000.
Most analysts covering this restaurant chain have raised
earnings expectations over the past month, stemming from a strong
first-quarter performance from mid May. In fact, the agreement has
been near unanimous among analysts, with 7 of 8 total estimates for
this year moving higher of late.
The Zacks Consensus Estimate for 2011 is currently $1.42 per
share, which is up 41% from a month ago. As for 2012, the Zacks
Consensus Estimate of $1.77 per share has advanced 33% as 9 of 10
expectations were raised. Furthermore, analysts expect profit
growth of 25% for 2012 over 2011.
RRGB announced earnings per share of 58 cents for its first
quarter, which topped the Zacks Consensus Estimate by as much as
140%. Total company revenues were up 4.1% to $286.8 million.
Restaurant revenue was up 5.2% while company-owned same-restaurant
sales climbed 1.9%.
In addition to its strong quarter, Zacks also likes the
company's Project RED turnaround plan, which focuses on revenue
growth, expense control and capital deployment. Though the plan is
still in its early stages, RRGB said it is encouraged by the
traction that its team members have already achieved by
strengthening its business performance and setting a course to
become a best-in-class restaurant company.
In late May, Zacks upgraded out longer-term recommendation on
Red Robin Gourmet Burgers to "Outperform" from "Neutral".
Red Robin Gourmet Burgers is a casual dining restaurant chain
with more than 450 restaurants across the U.S. and Canada. It is,
of course, part of the retail-restaurants industry. There are 2
other names from this space on today's Zacks #1 Rank List: BJ's
Restaurants, Inc. (BJRI) and Krispy Kreme Doughnuts,
Inc. (KKD).
BJ'S RESTAURANT (BJRI): Free Stock Analysis Report
FOOT LOCKER INC (FL): Free Stock Analysis Report
KRISPY KREME (KKD): Free Stock Analysis Report
ROCKY BRANDS (RCKY): Free Stock Analysis Report
RED ROBIN GOURM (RRGB): Free Stock Analysis Report
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