Pier 1 Imports Inc (NYSE:PIR) is currently trading at US $5.53 and rating firms seem to have target price set on the stock. Median 12 month price target of 13 analysts covering the company is US$6.00, indicating the stock could gain more than 8 percent.

1. PIR: Pier 1 Imports Inc Stock Analysis
Pier 1 Imports, Inc is an import company that specialises in home decor and furniture. It
comprises retail stores and an online website conducting business under Pier 1 Imports. Clients
can shop for decorative accessories and furniture.
Decorative accessories categories include rugs, mirrors, gifts and seasonal items. Furniture
category includes furniture and furniture cushions and merchandise comprises metal or
handcrafted natural materials.
Analysis of Stocks
Pier 1 Imports Inc (NYSE:PIR) is currently trading at US $5.53 and rating firms seem to have
target price set on the stock. Median 12 month price target of 13 analysts covering the company
is US$6.00, indicating the stock could gain more than 8 percent.
Highest analyst price target is a gain of 19 percent. Roundups of analyst notes indicate most are
rating PIR as a strong buy, according to Zacks.
Longbow has issued a verdict on Pier 1 Imports Inc giving it a neutral rating. Topeka Capital
Markets analysts issued their verdict and gave the firm a buy rating on the stock.
In Pier 1 Imports Inc's most recent quarter, EPS has moved to US $0.23 from $0.13 in the
previous quarter and revenues have been pegged at US $542.33 million.
Average analyst prediction is that earnings for the quarter will come between $-0.08 and -o.04.
Piers 1 has forecast EPS to be in line with guidance range of $0.18 to 0.22 per share.
Online sales are around 14.7 percent of total Q4 sales and company comparable has fallen by
0.7% as against prior guidance for decrease of 2 to 4 percent.
Preliminary top results were higher than previous guidance showcasing positive customer
reactions. In a company release, CCEO Alex Smith has spoken of "promotional and clearance
activity during the period."
An important progress has been made in bring inventories in line during the second half of the
year ending fiscal 2016 with inventory levels lowering by 15% while position help in
improvement of both in store merchandising and supply chain execution moving forward,
according to the CEO.
Summary numbers indicate revenues of USD 542.33 million with net earnings of USD 18.68
million, while there has been gross narrowing of margins from 37.19 to 33.91 compared to the
margin in 2015 for the comparable period, while operating EBITDA margins move from 12.51
to 8.85 percent.

2. Y-O-Y change in operating cash flow of 9.19 percent is the same as the change in earnings
resolution in no significant movement in terms of reserves and accruals.
Narrowing of operating margins led to decline in earnings. For comparison purposes, revenues
fell by 14.77 percent and earnings by close to 71.03% as against the last period prior to this.
Company's Y-O-Y decline in earnings was influenced by weakening gross margins and issues
with cost controls. Operating margins fell from 12.51 percent to 8.85 percent in the time frame.
Decline in gross margins were offset by improvements in balance sheet showing progress.
Company's working capital days fell indicating gross margin decline is not altogether bad.
The earnings number of the company is sustainable. Decline in earnings have been influenced
by decline in operating margins and one time items.
Conclusion
PIR is rated as a strong BUY by analysts. This could lead to steady gains for investors who opt
for this company. All in all, this is a wise investment decision given the sustainability of earnings
of the company.
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Published at: http://daddyinsider.com/index.php/2016/07/01/pir-pier-1-imports-inc-stock-
analysis/