Benchmark: For First Time In Years, 1-800-Flowers Delivered A 'Complete Holiday Quarter'
1-800-Flowers.Com Inc (NASDAQ: FLWS) reported fiscal second-quarter results which marks the first time in years the company offered investors a "complete holiday quarter," according to Benchmark.
The Analyst
Benchmark's Daniel Kurnos maintains a Buy rating on Flowers.com with a price target lifted from $15 $18.
The Thesis
Flowers.com delivered the exact type of earnings report patient shareholders have been waiting for since 2015, Kurnos said in a research note. The report is highlighted by 8-percent growth in Consumer Floral, a surprising 8-percent increase in Harry & David revenue and 12-percent improvement in new customers.
Encouragingly, the earnings print also showed management's significant investments in Harry & David paid off with tangible results. The analyst said management also deserves credit for better attracting younger and tech-savvy customers.
It's apparent the "flywheel is finally starting to spin" and benefits seen in the reported quarter look to be sustainable. In fact, the company will now face a task of deciding what to do with its large amount of cash on hand. Some of the potential options include acquiring rival FAT Companies Inc (NASDAQ: FTD) if the struggling company puts itself or some of its assets up for sale.
Flowers.com looks to be on track to grow revenue in the 5 percent to 7 percent range and EBITDA by 8 to 12 percent, the analyst said.
Price Action
Shares of 1-800-Flowers.Com were trading higher by 2 percent at $16.25 Friday afternoon.
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Latest Ratings for FLWS
May 2018 | Noble Financial | Downgrades | Buy | Hold |
May 2018 | DA Davidson | Maintains | Neutral | Neutral |
Dec 2017 | Northcoast Research | Downgrades | Buy | Neutral |
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