) posts 63 cents, vs. 44 cents second-quarter earnings per share. Piper Jaffray maintains outperform rating and cuts earnings estimates.
Analyst Jeffrey Klinefelter says the company reported lower-than-expected second-quarter EPS, and gross margin fell short of last year's 70%. He believes fiscal year 2006 (January) management guidance of $2.7 billion revenue is bullish, yet its EPS guidance increase to $3.10-$3.30 is still short of the consensus EPS estimate of $3.38.
Klinefelter raises fiscal year 2006 revenue estimate to $2.63 billion from $2.55 billion, and fiscal year 2007 revenue to $3.04 billion from $2.96 billion.
He cuts fiscal year 2006 EPS estimate to $3.30 from $3.38, and fiscal year 2007 to $3.90 from $4.00 to account for higher store expenses. He also reduces price target to $78 from $88.