Leslie's sinks after earnings miss

Leslies

29/11/2023 14:10

** Shares of Leslie's Inc  LESL.O  down 22.5% at $4.45
premarket after pool and spa products retailer's qtrly report
disappoints
    ** Co late Tues posted fiscal Q4 adj EPS of 14 cents vs
consensus view of 18 cents, according to LSEG data
    ** Multiple transitory headwinds impacted financial results
through the fiscal fourth quarter - CEO Mike Egeck
    ** Q4 sales decreased 9% yr/yr to $432 mln, topping avg est
of $419 mln
    ** Co forecast fiscal 2024 sales of $1.41-$1.47 bln,
essentially flat to 2023, and adj EPS of 25-33 cents
    ** Jefferies, which rates LESL "hold", cut its PT to $5 from
$6
    ** "...our enthusiasm for the stock remains tempered given
consumer price sensitivity hitting equipment, a debt-heavy
capital structure limiting capital allocation flexibility, and a
limited degree of profitability improvement guided for '24,"
Jefferies wrote in note
    ** Telsey Advisory cut its PT to $6 from $7.50 and Piper
Sandler also reduced its PT to $5 from $6
    ** 10 of 12 analysts rate LESL "hold", while 2 have "strong
buy" recommendations and their median PT is $6- LSEG
    ** Through Tues close, LESL shares have shed 60% over the
past year

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))