Comparable sales are up more than 4 percent through the end of July, and in another change to its approach, management also is re-introducing the provision of guidance, expecting second half EPS in the range of $0.18-$0.22 on comparable shop sales gains of 2 percent to 3 percent. We are raising our FY’11 EPS estimate to $0.48 (from $0.41) and FY’12 to $0.55 (from $0.47) to reflect stronger comp same store sales (SSS) from its U.S. shops, improved profitability at its company-owned stores and reduced interest expense. We maintain our Hold (2) rating, but with the European arbitration now fully behind the company, improved execution and potential for strategic alternatives, we are warming to Midas once more.
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BB&T Capital Markets makes a market in the securities of Midas, Inc.
BB&T Capital Markets expects to receive or intends to seek compensation for investment banking services from Midas, Inc. in the next three months.
An affiliate of BB&T Capital Markets received compensation from Midas, Inc. for products or services other than investment banking services during the past 12 months. The analyst or employees of BB&T Capital Markets with the ability to influence the substance of this report know or have reason to know the foregoing facts.