Fairway Group Likely To Beat On Bottom Line EPS - Strong Acquisition Candidate

Fairway Group Holdings Corp. (NASDAQ: FWM) earning's report is scheduled for May 28th, 2015, but no 8K has yet been filed to confirm this date. We will assume the company will report on this date as it normally does not file an 8k to officially announce earnings, but rather stays on a set schedule. We feel the upcoming earnings report will beat on the bottom line mainly because the company imports a lot of its food from Europe.

Fairway Group Holdings owns and operates food retailers throughout The United States. The company provides fresh produce, fruits and vegetables along with natural and organic foods which include cheeses, meats and chicken products, and a whole raft of other various foods. Basically, Fairway competes with the likes of WholeFoods (NASDAQ: WFM)The Kroger Co. (NYSE: KR), Trader Joe's, and Aldi to name but a few.

With the EURO weakening substantially due to the quantitative easing (QE) engaged by the European Central Bank (ECB), and with the dollar subsequently gaining strength during Fairway's Q4, we believe Fairway's costs will be lower than analyst expectations, thus showing a better bottom line earnings-per-share (EPS) than analysts expect. We note that the average analyst bottom line earnings expectations did not factor in the weaker EURO and stronger Dollar, so what they are likely missing is the fact that Fairway enjoyed more buying power with the dollar than in past quarters, which we believe should equate to a decent beat in the (EPS).

Earnings Est

Avg. Analyst Estimate for Quarter Ended March 31, 2015

Our Esrimate For the same quarter

 

 

Avg. Estimate

$-0.14

$-0.08 to - $0.10

 

 

No. of Analysts

7.00

 

 

 

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Disclosure: Long FWM.

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