FTD - Synonymous with Flower Delivery Service - Part II
The original post on FTD was when it closed the 1/18/2108 Friday session at $6.70. At the time, the question was whether the stock finds support in the mid-$6.50 range or fall further to new 52-week lows.
The answer came quick and has been severely punished. The stock closed on March 29th at $3.64 and has yet to find support, but that may come quick.
In the original post, the chart description contained a note that the MACD was suggesting further weakness ahead. FTD has been in full-blown free-fall mode since "fumbling" Valentines Day.
FTD has become a credit risk, though I believe once it finds support will become a potential great turnaround story. I would be happy buying in the $3, $2 and $1 range, as long as financial obligations remain materially consistent. The bottoming process may take several quarters, especially since the U.S. is entering a recession - though not highly publicized yet.
FTD has updated its 2018 Outlook which includes the Valentine's Day blunder, with first-quarter outlook now expected to be about $20 million less than internal expectations due to a dismal performance on the holiday. "We took a different approach to media-based marketing in certain brands, and the results were substantially short of our expectations," Chief Executive John Walden commented after the release. "We will incorporate our many learnings from Valentine's Day to inform our plans throughout this year and in the future."
FTD, which did not explain why it has not released earnings more than two months after the close of the year, said that it expects 2017 results to fall within previously stated forecast ranges, and now expects to fall in the lower half of guidance ranges provided for 2018 after the Valentine's Day flub. The company did say that its outlook for 2018 leads executives to anticipate that it will not live up to certain obligations in its credit agreement, and it is discussing $50 million in credit support from its largest shareholder, Liberty Interactive Corp.
Price to book is $.26, Price to sales $.09 and Price to cash flow $2.24.
Consensus forward P/E is around $6.87.
Company Profile
Employees: 1,500+
FTD Companies Inc is a floral and gifting company. The company provides floral, specialty foods, gift and related products and services to consumers, retail florists, and other retail locations and companies in need of floral and gifting solutions. FTD Companies, Inc. offers its products under the ProFlowers, ProPlants, Shari’s Berries, Personal Creations, Mercury Man logo, FTD, Interflora, RedEnvelope, Flying Flowers, Flowers Direct, Ink Cards, Postagram, and Gifts.com through its Websites, associated mobile sites and applications, and telephone.