These are top 10 stocks traded on the Robinhood UK platform in July
Investing.com - Stifel has reduced its price target on Leslie’s (NASDAQ:LESL) to $0.47 from $0.57 while maintaining a Hold rating after the company released disappointing preliminary third-quarter results. The stock, currently trading at $0.42, has lost over 70% year-to-date, according to InvestingPro data.
The swimming pool supplies retailer reported preliminary guidance indicating that third-quarter revenue will decline by 12% with adjusted EBITDA falling 26% at the midpoint. Following these results, Leslie’s has withdrawn its fiscal year 2025 guidance. This continues a concerning trend, as InvestingPro data shows revenue has already declined by 6.12% over the last twelve months.
Stifel expressed surprise at the significant shortfall, noting that Pool (NASDAQ:POOL) Corporation’s second-quarter results suggested a more stable environment for independent retail despite unfavorable weather trends affecting the sector.
The research firm now believes going concern risk has become a central issue for Leslie’s, with their updated outlook projecting free cash flow needs through fiscal year 2027 and elevated leverage ahead of over $750 million in term debt due in 2028. InvestingPro’s Financial Health Score rates Leslie’s as ’FAIR,’ with total debt reaching $1.1 billion and a concerning debt-to-capital ratio of 0.90.
Leslie’s is scheduled to hold its earnings call next week, at which point Stifel indicated it would more thoroughly evaluate its outlook on the company while maintaining its Hold rating for now. For investors seeking deeper insights into Leslie’s financial health and valuation metrics, InvestingPro offers comprehensive analysis through its Pro Research Report, available alongside 12 additional key ProTips for this stock.
In other recent news, Leslie’s reported a 12% decline in net sales for the preliminary third quarter of fiscal 2025, amounting to approximately $500 million. The company also announced a preliminary net income ranging between $20 million and $22 million, with adjusted EBITDA estimated between $79 million and $82 million. Leslie’s withdrew its fiscal year 2025 guidance following worse-than-expected sales attributed to unfavorable weather conditions. Analysts at Loop Capital and Telsey Advisory Group both lowered their price targets for Leslie’s to $0.75, citing the negative pre-announcement of earnings. Mizuho (NYSE:MFG) also reduced its price target to $1.00, highlighting margin pressures as a concern. Despite these challenges, Leslie’s appointed Amy College as the new Chief Merchandising and Supply Chain Officer, effective July 20, 2025. College will oversee various operational areas, replacing Moyo LaBode, who recently left the company.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.