FTD Predicts Little Love for Mom

Floral retailer FTD (NYSE: FTD  ) delivered its fiscal third-quarter results earlier this week, and results were higher thanks to an international expansion. In the quarter, FTD earned $9.6 million, or $0.32 per share on sales of $182.9 million. Sales were 42% higher from a year ago thanks to an additional $53.6 million from international sales, which resulted from the company's acquisition of Interflora back in July.

Focusing on its domestic performance, the results weren't nearly as rosy. Its consumer segment increased revenues by 6%, but its florist segment reported a decrease in revenues of 7%. Management pointed to a large contract that was not renewed as the primary culprit for the decrease. However, I would bet increased competition from 1-800-Flowers (Nasdaq: FLWS  ) is playing a significant role in FTD's withering floral sales.

Looking ahead to the remainder of the year, FTD and analysts just can't agree on anything. FTD increased its earnings estimate, yet lowered its revenue forecast, fearing lackluster sales for Mother's Day. It now expects sales of $615 million and earnings of $29 million, or $0.98 per share. Meanwhile, analysts expect Moms to be inundated with flowers and are predicting revenues of $631.6 million, but are not as confident about earnings, forecasting $0.95 per share.

FTD has delivered to investors over the past year, with its stock price up 55%, but has slowed down of late, falling 4% year-to-date. Will the stock price continue to droop, or will the international soil prove fertile and feed its growth? Management certainly doesn't sound overly confident, at least with respect to its prospects for Mother's Day. The good news is FTD isn't expensive despite its annual increase. On a trailing P/E basis, it compares very favorably to 1-800-Flowers. FTD has also generated plenty of free cash flow, though it does carry quite a bit of debt as well. With mixed results and mixed expectations, I'd feel more comfortable waiting to see how Mom fares before even considering putting any money into FTD.

For more on the world of flowers, check out:

• FTD's International Flair: Fool by Numbers
• 1-800-Flowers in Full Bloom
• FTD Group Sends Flowers: Fool by Numbers

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Fool contributor Mike Cianciolo welcomes feedback and doesn't own any of the companies in this article.