Does anyone have access to the full text of the BB&T analysis? Because the blurbs I've seen quoted in the news make no sense.
BB&T lowed their earnings estimates to $1.77 for FY05 and $2.25 for FY06. This compares to $1.55 in FY04.
As I write this, HOFT is $18.83, at a trailing P/E of 12. BB&T is expecting earnings growth of 14%, meaning that HOFT has a PEG ratio of only 0.88.
If you give any credence to BB&T's projection on FY06 earnings, that'll represent 27% earnings growth over FY05. It seems like that should make this stock a screaming buy!
I wish I had a better idea of why SG&A expenses came in so high in Q1. But with a quarter of the stock owned by the ESOP, you can bet employees will be looking for a way to bring this back in line for Q2. BB&T must be thinking something along those lines since they expect HOFT to earn $1.52 in the next three quarters.
Also, HOFT is finally making some good progress in trimming their inventory. This means that cash flow for Q1 should look much better than earnings.