Stocks to Watch After Black Friday 2013 – Francesca’s (FRAN)
The next company releasing third-quarter earnings the week after Black Friday 2013 is Francesca’s Holdings (FRAN). FRAN will be one of the top stocks to watch on Dec.5, 2013, when it releases its results before the market opens.
Analysts believe a profit of 20 cents per share is in the cards for FRAN stock, down from Q3-2012’s income of 24 cents per share. Sales are projected to rise, nonetheless, from $72.0 million last year to $79.2 million.
Don’t be fooled into thinking this is just a low-ball target that Francesca’s will easily top. The retailer only met estimates in the first quarter of this year, and actually missed estimates in Q2. That makes FRAN one of the most important stocks to watch, because there could be a real problem here. And if there is, FRAN is going to need more than a strong Black Friday 2013 to snap out of it.
On top of that, as news-worthy as the upcoming earnings may be, there’s actually a bigger threat to the value of FRAN stock right now: a brewing class action lawsuit. The complaint? The lawyers putting together the suit will argue that Francesca’s didn’t adequately warn investors that the past couple of quarters would be disappointing.
While poor corporate results rarely lead to a successful lawsuit, they can be distracting and could be a drag on FRAN stock. That’s why, Black Friday 2013 aside, this boutique chain is definitely top on the list of stocks to watch in coming months.