After reading 1-800-FLOWERS.COM, Inc.'s (NasdaqGS:FLWS) most recent earnings announcement (29 September 2019), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. As a long term investor, I pay close attention to earnings trend, rather than the figures published at one point in time. I also compare against an industry benchmark to check whether 1-800-FLOWERS.COM's performance has been impacted by industry movements. In this article I briefly touch on my key findings.
Commentary On FLWS's Past Performance
FLWS's trailing twelve-month earnings (from 29 September 2019) of US$37m has declined by -0.08% compared to the previous year.
Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 8.3%, indicating the rate at which FLWS is growing has slowed down. What could be happening here? Let's examine what's transpiring with margins and if the rest of the industry is experiencing the hit as well.
In terms of returns from investment, 1-800-FLOWERS.COM has fallen short of achieving a 20% return on equity (ROE), recording 11% instead. However, its return on assets (ROA) of 5.9% exceeds the US Online Retail industry of 5.2%, indicating 1-800-FLOWERS.COM has used its assets more efficiently. Though, its return on capital (ROC), which also accounts for 1-800-FLOWERS.COM’s debt level, has declined over the past 3 years from 12% to 9.1%.
What does this mean?
1-800-FLOWERS.COM's track record can be a valuable insight into its earnings performance, but it certainly doesn't tell the whole story. Companies that are profitable, but have volatile earnings, can have many factors affecting its business. I suggest you continue to research 1-800-FLOWERS.COM to get a better picture of the stock by looking at:
- Future Outlook: What are well-informed industry analysts predicting for FLWS’s future growth? Take a look at our free research report of analyst consensus for FLWS’s outlook.
- Financial Health: Are FLWS’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
- Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 29 September 2019. This may not be consistent with full year annual report figures.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
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