This Warren Buffett Stock Is Selling Off. Time to Buy?
Even companies that have been besting inflation since it began to soar are having a tough time maintaining their lead. Buffett stock Floor Decor (NYSE: FND), for example, has been posting excellent operational results despite the stormy climate. But it's beginning to feel more pressure, and a ho-hum first-quarter earnings report last week had investors selling the stock off. Does this present a juicy opportunity to buy on the dip?
Floor Decor reported 2023 first-quarter earnings last week that just about met analyst expectations. Earnings per share (EPS) of $0.66 came in flat with last year's EPS and a penny below what Wall Street was expecting. Sales increased 9.1% to $1.1 billion, just in line with Wall Street's forecast.
Other than that bland report, which wasn't exactly horrible but didn't excite investors, the company reported a 3% drop in comparable sales (comps). That means all the growth in revenue came from new stores. While it's a positive for a company to have new store opening opportunities, which we'll get to in a minute, a healthy operation also generates some growth in stores that are already open.
Source Fool.com
