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Williams Trading Downgrades Hibbett Sports stock amid disappointing Q4 results

EditorEmilio Ghigini
Published 03/18/2024, 08:00 AM
© Reuters.

On Monday, Hibbett Sports (NASDAQ:HIBB) experienced a shift as Williams Trading adjusted its stance on the company's stock. The firm downgraded the sports retailer from Buy to Hold and set a new price target of $73.00.

This decision was influenced by Hibbett's fourth-quarter fiscal year 2024 revenue, which did not meet the market's expectations, and the company's fiscal year 2025 guidance, which the analyst did not consider conservative.

Hibbett reported a 6.4% decrease in same-store sales (SSS) for the fourth quarter of 2024, with brick-and-mortar (B&M) same-store sales down by 9.2%. In contrast, the company's e-commerce sales saw an increase of 6.9%.

Looking ahead, Hibbett's fiscal year 2025 guidance anticipates total SSS to be flat or to decline by a low single-digit percentage, while B&M SSS is expected to follow the same trend. However, e-commerce sales are projected to grow by a mid to high single-digit percentage.

The company's guidance for total revenue in fiscal year 2025 is forecasted to be flat or increase up to 2%, ranging between $1.729 billion and $1.764 billion. Moreover, the earnings per share (EPS) are estimated to be between $8.00 and $8.75. These projections fall short of the consensus revenue and EPS estimates, which were set at $1.799 billion and $8.82 billion, respectively.

The revision of the stock rating and price target reflects the analyst's recalibration of expectations in light of Hibbett's recent performance and future outlook. This update to investors signals a more cautious view of the company's stock, suggesting that the market should temper its expectations for growth and profitability in the upcoming fiscal year.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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