"Maidenform Brands (NYSE: MFB), which earns our strong buy rating, saw sales rise 5.6% in the second quarter based on strong demand," reports analyst Tracey Ryniec.
In Zacks Elite Stocks, she explains, "Maidenform Brands sells intimate apparel such as bras and shapewear at department stores and other retail outlets.
"The company provides a collection of recognizable brands including Maidenform, Lilyette, Control It!, and Sweet Nothings. It also licenses the Donna Karan and DKNY brands, which it launched in the first quarter.
"The company reported second quarter results on Aug.12 which saw sales increase $6.1 million to $114.2 million. Wholesale segment sales rose 6.5% to $99.7 million but retail segment sales were unchanged at $14.5 million.
"Shapewear sales continued to hum along, rising 9.2% compared to the year ago period. Net income, however, fell slightly to $7.3 million from $7.8 million in the second quarter of 2008.
"The company is bullish about the remainder of the year. Sales for the third quarter are expected to rise 12% to 16% over the year ago period. Earnings per share are expected in the range of 34 to 38 cents in the quarter. The Zacks Consensus Estimate for the third quarter is currently at 34 cents.
"The company also raised its prior full-year EPS guidance to the range of $1.10 to $1.16 from $1.00 to $1.10. The Zacks Consensus Estimate for 2009 is currently at $1.05. Analysts will obviously be revising their estimates given the second quarter results and forecast.
"Fundamentally, Maidenform Brands is a strong buy-rated stock. It is attractively valued, trading with a forward P/E of 13.6. The company has a solid 1-year return on equity (ROE) of 21.78%."
Steven Halpern's TheStockAdvisors.com offers a free daily overview of the favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
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