Sears Holdings Corp. (NASDAQ:SHLD) disappointed with its overall first-quarter 2011 results. The company posted a quarterly loss of $1.39 per share that plunged drastically from the prior-year quarter earnings of $0.16 primarily due to sluggish top-line performance. Managements cost cutting initiatives for enhancing profits were of no use.
Moreover, intense competition and exposure to adverse foreign currency translations may undermine the companys future operating performance. Furthermore, rising debt and declining cash and equivalents may adversely impact the company s future expansion and operational activities.
Currently, we are maintaining a long-term Underperform recommendation on the stock. Our target price of $62.00 is based on P/CF multiple of 6.3x.
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