Kirkland's, Inc. (KIRK)
Kirkland's, Inc. (KIRK) posted fourth-quarter 2011 earnings of $0.72 per share, which missed the Zacks Consensus Estimate of $0.74. But it was above the prior-year earnings of $0.66, fueled by strong sales during Harvest and Christmas. High-rising prices of commodities as well as slow recovery of global economy is negatively impacting the company's margins.
The company has also lowered its earnings guidance for the first quarter 2012 on the back of lower comparative sales during the period. Moreover, overdependence on Chinese vendors poses a threat. Hence we maintain an Underperform rating on the stock.
Based on 2012 earnings estimate of $1.05, the stock is trading at 13.0x compared to the industry average of 20.5x. Our target price of $12.00 is based on approximately 11.4x our 2012 earnings estimate.
KIRKLANDS INC (KIRK): Free Stock Analysis Report
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