99¢ Only Stores (NDN: 16.00 -0.34 -2.08%) continues to see sales increase as cash-strapped consumers pinch every penny.
Company Description
99¢ Only Stores runs 276 stores in the South West, mostly in California, targeting cash-strapped consumers. The stores are filled with name-brand foods.
Same-Store Sales Up
On July 8 99¢ Only Stores reported a 2.7% increase in same-store sales for the fiscal second quarter. Total sales rose to just under $347 million. Both customer transactions and average ticket price improved.
The company also said they expect increase the store count by 5% by the end of this fiscal year.
Estimates Rise
In the past 2 months the full-year consensus estimates for fiscal 2011 and 2012 are both up. This year’s average projection for 99¢ Only Stores is $1.01, up 9 cents.
Next year’s forecasts are averaging $1.14, up 7 cents. If 99¢ Only Stores can meet these expectations, the year-over-year growth rates will be 12% and 13%, respectively.
The conference call for quarterly earnings is scheduled for Aug 4.
Nice ValuationsShares of NDN are trading around 15 times forward earnings and with a PEG just under 1. Its price to book is ahead of its peers at 1.8 times, compared to the industry average of 2.4 times.
| Analysts' Targets | |
| Wedbush Morgan Securities | $19 |
| Hold | |
| Thursday, February 04, 2010 | |
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