By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
AmextaFinanceAmextaFinance
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
9
Notification Show More
News
World’s largest EV battery maker CATL to raise at least $4bn
5 minutes ago
News
Taiwan TV drama to give public a visceral vision of war with China
1 hour ago
News
Trump vows to lower drug prices in the US by up to 80%
3 hours ago
News
Trump Gulf trip promises good news for US business
4 hours ago
News
Chinese companies purge supply chain of foreign parts amid US trade war
5 hours ago
News
Hamas to release Israeli-American hostage in bid to secure Gaza ceasefire
6 hours ago
News
Funds for wealthy investors snap up expensive private equity stakes
7 hours ago
News
US claims ‘substantial progress’ after two days of trade talks with China
8 hours ago
News
The Ukrainian drone pioneer racing Russia’s military machine
9 hours ago
Aa
AmextaFinanceAmextaFinance
Aa
  • Banking
  • Credit Cards
  • Loans
  • Dept Management
  • Mortgage
  • Markets
  • Investing
  • Small Business
  • Videos
  • Home
  • News
  • Banking
  • Credit Cards
  • Loans
  • Mortgage
  • Investing
  • Markets
    • Stocks
    • Commodities
    • Crypto
    • Forex
  • Videos
  • More
    • Finance
    • Dept Management
    • Small Business
Follow US
AmextaFinance > Markets > Stocks > Leslie’s shares crash 30% on outlook cut, several analyst downgrades
Stocks

Leslie’s shares crash 30% on outlook cut, several analyst downgrades

News Room
Last updated: 2023/07/15 at 6:32 AM
By News Room
Share
3 Min Read
SHARE

© Reuters. Leslie (LESL) shares crash 30% on outlook cut, several analyst downgrades

Leslie’s Inc (NASDAQ:) shares crashed 31% in pre-market Friday after the company announced weaker-than-expected preliminary financial results for the third quarter of fiscal 2023.

Leslie said it expects FQ3 sales of $611 million with comparable sales declining 12% year-over-year. The adjusted earnings per share are seen at $0.40.

Analysts were looking for FQ3 revenue of $703.7 million and adjusted EPS of $0.69.

Mike Egeck, chief executive officer, commented, “Our fiscal third quarter results were well below our expectations as low double digit traffic declines in our Residential and Pro businesses drove negative comps across both discretionary and non-discretionary categories.”

“While abnormal weather continued to pressure traffic levels, customer surveys conducted towards the end of the quarter also indicated increased price sensitivity and that consumers entered the pool season with a greater than normal amount of chemicals leftover from last year.”

As a result, the company now sees FY adjusted EPS at $0.30 on revenue of $1.44B, down from the prior forecast for earnings of $0.82 on revenue of $1.6B. Analysts were looking for EPS of $0.76 on revenue of $1.6B.

“Our third quarter gross margins were down year-over-year due to higher product costs that we could not pass through to consumers, the impact of higher distribution- related expenses and capitalized costs as we reduce inventory from peak levels, and fixed cost deleverage,” Egeck added.

The company also announced that Scott Bowman has been appointed chief financial officer, effective August 7. Steve Weddell, who is stepping down as CFO effective August 7, 2023, will remain an advisor to the company through December 31 to facilitate the transition.

Many analysts downgraded the LESL stock today. Guggenheim analysts cut the rating to Neutral as the reset was “worse than we expected.”

“As previewed earlier this week, we had expected a ~20% “one-time” reset in 2023 EPS as the industry appeared to be “giving back” a solid portion of the trichlor pricing benefit it captured during 2021-2022,” they wrote in a note.

“Given the combined impacts of a) weak traffic trends, b) increased price sensitivity, c) elevated customer “carry-over” inventory levels, and d) an over-supply of inventory throughout the channel, we are meaningfully lowering our 2023-2024 expectations.”

On the other hand, BofA analysts remain Buy-rated as they are “still comfortable with the long-term fundamentals.”

“We continue to view LESL as a retailer with a dominating industry-leading position in pool supplies, which has a sticky and growing customer base. Through both M&A and new store builds (mostly aimed at LESL’s smaller customer base of Pros), we think the company has significant white space for market share expansion.”

Read the full article here

News Room July 15, 2023 July 15, 2023
Share this Article
Facebook Twitter Copy Link Print
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Finance Weekly Newsletter

Join now for the latest news, tips, and analysis about personal finance, credit cards, dept management, and many more from our experts.
Join Now
World’s largest EV battery maker CATL to raise at least $4bn

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

Taiwan TV drama to give public a visceral vision of war with China

The TV anchor reads the news without blinking: China has imposed a…

Trump vows to lower drug prices in the US by up to 80%

Unlock the White House Watch newsletter for freeYour guide to what Trump’s…

Trump Gulf trip promises good news for US business

Hello and welcome to the working week.The White House spray tan team…

Chinese companies purge supply chain of foreign parts amid US trade war

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects…

- Advertisement -
Ad imageAd image

You Might Also Like

Stocks

CPS reports solid 2023 performance, eyes future growth By Investing.com

By News Room
Stocks

Niu Technologies faces mixed results in Q4 2023 By Investing.com

By News Room
Stocks

Exagen Inc. reports strong 2023 revenue growth By Investing.com

By News Room
Stocks

Legacy Housing reports mixed results amid sales decline By Investing.com

By News Room
Stocks

Harmony Biosciences exec sells over $383k in stock By Investing.com

By News Room
Stocks

Biofrontera posts record revenue and outlines growth plans By Investing.com

By News Room
Stocks

Granite Ridge CFO buys $31,000 in company stock By Investing.com

By News Room
Stocks

Coliseum Capital Management buys MasterCraft Boat shares worth over $3.2m By Investing.com

By News Room
Facebook Twitter Pinterest Youtube Instagram
Company
  • Privacy Policy
  • Terms & Conditions
  • Press Release
  • Contact
  • Advertisement
More Info
  • Newsletter
  • Market Data
  • Credit Cards
  • Videos

Sign Up For Free

Subscribe to our newsletter and don't miss out on our programs, webinars and trainings.

I have read and agree to the terms & conditions
Join Community

2023 © Indepta.com. All Rights Reserved.

YOUR EMAIL HAS BEEN CONFIRMED.
THANK YOU!

Welcome Back!

Sign in to your account

Lost your password?