Zacks: Brokerages Anticipate Franchise Group, Inc. (NASDAQ:FRG) Will Announce Quarterly Sales of $794.09 Million

Brokerages predict that Franchise Group, Inc. (NASDAQ:FRG) will post $794.09 million in sales for the current quarter, Zacks reports. Three analysts have issued estimates for Franchise Group’s earnings. The lowest sales estimate is $785.06 million and the highest is $800.20 million. Franchise Group reported sales of $512.63 million in the same quarter last year, which indicates a positive year over year growth rate of 54.9%. The company is scheduled to report its next quarterly earnings report on Monday, January 1st.

According to Zacks, analysts expect that Franchise Group will report full-year sales of $3.03 billion for the current financial year, with estimates ranging from $3.01 billion to $3.07 billion. For the next financial year, analysts forecast that the firm will report sales of $3.22 billion, with estimates ranging from $3.18 billion to $3.28 billion. Zacks Investment Research’s sales averages are a mean average based on a survey of sell-side research analysts that that provide coverage for Franchise Group.

Franchise Group (NASDAQ:FRG) last posted its quarterly earnings data on Thursday, May 6th. The company reported $0.90 EPS for the quarter, beating analysts’ consensus estimates of $0.87 by $0.03. The company had revenue of $621.35 million during the quarter, compared to analysts’ expectations of $709.82 million. Franchise Group had a return on equity of 12.37% and a net margin of 0.94%. The business’s revenue for the quarter was up 23.5% on a year-over-year basis.

Several research analysts have weighed in on the stock. B. Riley increased their price target on shares of Franchise Group from $38.00 to $46.00 and gave the stock a “buy” rating in a research report on Thursday, March 11th. Oppenheimer began coverage on Franchise Group in a research report on Tuesday, April 27th. They set an “outperform” rating and a $50.00 target price on the stock. Zacks Investment Research raised Franchise Group from a “hold” rating to a “buy” rating and set a $45.00 price objective on the stock in a research note on Tuesday, March 16th. Barrington Research lifted their price objective on Franchise Group from $40.00 to $48.00 and gave the company an “outperform” rating in a research report on Thursday, March 11th. They noted that the move was a valuation call. Finally, DA Davidson increased their target price on shares of Franchise Group from $40.00 to $49.00 and gave the stock a “buy” rating in a report on Thursday, March 11th. One research analyst has rated the stock with a hold rating and six have assigned a buy rating to the company. The stock presently has a consensus rating of “Buy” and an average target price of $44.43.

Hedge funds have recently bought and sold shares of the business. BlackRock Inc. grew its holdings in Franchise Group by 21.6% during the 1st quarter. BlackRock Inc. now owns 1,974,843 shares of the company’s stock valued at $71,310,000 after buying an additional 350,656 shares in the last quarter. Hood River Capital Management LLC grew its stake in Franchise Group by 2.1% during the fourth quarter. Hood River Capital Management LLC now owns 1,394,429 shares of the company’s stock valued at $42,460,000 after acquiring an additional 28,838 shares in the last quarter. Wells Fargo & Company MN increased its holdings in Franchise Group by 4.2% in the 4th quarter. Wells Fargo & Company MN now owns 915,515 shares of the company’s stock valued at $27,877,000 after acquiring an additional 37,228 shares during the last quarter. Geode Capital Management LLC lifted its stake in Franchise Group by 11.8% in the 1st quarter. Geode Capital Management LLC now owns 435,622 shares of the company’s stock worth $15,730,000 after purchasing an additional 46,005 shares in the last quarter. Finally, Punch & Associates Investment Management Inc. boosted its holdings in shares of Franchise Group by 238.4% during the 4th quarter. Punch & Associates Investment Management Inc. now owns 365,704 shares of the company’s stock valued at $11,136,000 after purchasing an additional 257,644 shares during the last quarter. Institutional investors and hedge funds own 43.32% of the company’s stock.

Shares of FRG traded up $0.96 on Friday, reaching $35.20. The company’s stock had a trading volume of 114,423 shares, compared to its average volume of 154,656. The stock’s 50 day simple moving average is $36.79 and its two-hundred day simple moving average is $33.12. The company has a debt-to-equity ratio of 1.26, a quick ratio of 0.53 and a current ratio of 1.13. Franchise Group has a 12-month low of $13.17 and a 12-month high of $41.50.

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 15th. Investors of record on Thursday, July 1st will be paid a dividend of $0.375 per share. This represents a $1.50 annualized dividend and a yield of 4.26%. The ex-dividend date is Wednesday, June 30th.

Franchise Group Company Profile

Franchise Group, Inc operates as a retailer, franchisor operator, and acquirer of franchised and franchisable businesses. It operates through 4 segments: Liberty Tax, Buddy's, Sears Outlet, and Vitamin Shoppe. The company provides tax preparation services in the United States and Canada; and franchises and operates rent-to-own stores that lease durable goods, such as electronics, residential furniture, appliances, and household accessories to customers.

Further Reading: Limitations of the P/E Growth ratio

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Earnings History and Estimates for Franchise Group (NASDAQ:FRG)

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