Leslie's misses Q3 adjusted EPS estimates
Overview
Leslie's fiscal Q3 sales fall 12.2% yr/yr to $500.3 million, amid challenging market conditions
Adjusted EPS and net income miss analyst expectations, per LSEG data
Adjusted EBITDA also falls short of estimates, reflecting operational difficulties
Outlook
Leslie's expects full-year sales of $1,210 mln to $1,235 mln
Company projects full-year net loss of $57 mln to $65 mln
Leslie's forecasts adjusted EBITDA of $50 mln to $60 mln
Company anticipates adjusted net loss of $31 mln to $39 mln
Result Drivers
WEATHER IMPACT - Leslie's cites adverse weather conditions as a significant factor affecting sales during peak season
COMPETITIVE PRICING - Competitive pricing dynamics contributed to a challenging sales environment, per CEO Jason McDonell
COST ALIGNMENT - Company reduced labor hours to align with decreased demand and store traffic
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Adjusted EPS | Miss | $0.2 | $0.28 (12 Analysts) |
Q3 EPS |
| $0.12 |
|
Q3 Adjusted Net Income | Miss | $37.90 mln | $49.80 mln (9 Analysts) |
Q3 Net Income |
| $21.70 mln |
|
Q3 Adjusted EBITDA | Miss | $81.60 mln | $89.90 mln (9 Analysts) |
Q3 Operating Income | Miss | $68.30 mln | $84.70 mln (9 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy."
Wall Street's median 12-month price target for Leslie's Inc is $0.75, about 53.3% above its August 5 closing price of $0.35
The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 7 three months ago
Press Release: ID:nGNX6vlcNM
