The e-commerce company 1-800 Flowers (FLWS) offers a range of products for various occasions in the United States and around the world. Fresh flowers, floral and fruit arrangements, plants and other custom products are among the company’s offerings.
Let’s take a look at what has changed in the company’s key risk factors that investors need to know about. (Watch FLWS Stock Charts in TipRanks)
1-800 flowers Risk factor’s
According to the new Tipranks Risk factor tool1-800 Flowers’ main risk category is marketability, which represents 26% of the total 42 risks identified for the stock. The next two main risk factors are Finance and Corporate and Technology and Innovation, which account for 17% each.
Since June, the company has added a new risk factor in Finance and Corporate. Under the Activity and business growthsaid the company, “Our recent growth rates may not be sustainable or indicative of our future growth.”
According to 1-800 Flowers, the COVID-19 pandemic, which resulted in home confinement and the closure of multiple physical stores, caused significant growth in the company’s e-commerce sales.
However, now that the COVID-19 crisis is under control and physical stores have reopened, the firm warns. investors that it may not be able to maintain its rapid revenue growth rates in the future, and this uncertainty in sales volume could affect the company’s share price.
On the positive side, the overall industry average for the Financial and Corporate risk factor is 34.7%, higher than the average risk in that category for 1-800 Flowers, which is only 16.7%.
1-800 flowers Financial performance
Now, let’s take a look at the company’s financial performance for the fiscal fourth quarter ended June 27, 2021.
1-800 Flowers reported strong revenue and earnings growth, beating analyst expectations.
Revenue was $ 487 million, up 16.5% year-over-year and slightly above the consensus estimate of $ 472.8 million. Gross revenue growth was driven by the strength of the company’s e-commerce and other businesses.
Meanwhile, 1-800 Flowers posted earnings of $ 0.20 per share, slightly above consensus estimates of $ 0.19 per share. However, earnings were down 13% year-over-year.
1-800-FLOWERS.COM CEO Chris McCann remains optimistic about the company’s strong revenue growth in fiscal 2022. The company led total revenue growth from 10% to 12% year on year. after year for fiscal year 2022.
McCann said: “Our guidance for double-digit revenue growth in fiscal 2022 is based on several factors, including the significant shift of consumers towards e-commerce shopping, which we anticipate will continue, the tremendous growth and behaviors positives that we have seen in our client files. and our significantly expanded product offering. “
Analyst Opinion on FLWS
In response to the fiscal fourth quarter earnings results, the Noble Financial analyst Michael Kupinski it maintained a Buy rating on FLWS and a price target of $ 47. This implies a potential upside of 55% from current levels.
Kupinski said: “We believe that the improved revenue during Covid sets the stage for favorable revenue growth going forward as the company markets to new customers, increases its loyalty-based customers, Passport, and develops new products. “.
Overall, 1-800 Flowers stock has a Strong Buy consensus rating, based on 3 purchases. In terms of price targets, the FLWS average target price is $ 51.00, reflecting a potential 12-month rise of 68.2% from current levels.