Filed Under: ,
Tickers in this Article: COH
On Tuesday, October 23, 2012, Coach (NYSE:COH) is expected to release its first quarter earnings.

Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: Can Earnings Guidance Accurately Predict The Future?

What to Expect: Coach is expected to report 75 cents per share, up 2.7% from a year ago when the company reported earnings of 73 cents per share.

The consensus estimate is down from 86 cents three months ago, but it hasn't changed in the last month. Analysts are expecting earnings of $3.85 per share for the fiscal year.

Coach is expected to report revenue of $1.16 billion for the quarter, beating last year's figure of $1.05 billion by 10.4%. Revenue of $5.31 billion is expected for the fiscal year.

Company Performance: Over the past four quarters, Coach has reported double-digit revenue growth. On average, the figure has risen by 14.6%. The biggest change came in the third quarter of the last fiscal year when revenue rose 16.6%.

COH's P/E ratio of 16.0 is under the industry average of 20.86. Companies with low P/E ratios may find it easier to surprise the market to the upside, even if their financial performance is not as strong as that of companies with high P/E ratios. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). From the investor's perspective, a stock with a lower ratio is relatively cheaper than a stock with a higher ratio. SEE: How To Use The P/E Ratio And PEG To Tell The Future Of A Stock

Since July 20, 2012, the stock price has dipped 4.1% to $56.43 from $58.84. Coach's best recent streak was when its price gained $3.15 per share between August 14, 2012 and August 17, 2012.

The Competition: Coach is an American marketer of accessories and gifts, including handbags, footwear, sunwear, travel bags, business cases, jewelry, clothing, fragrance, and watches. The majority of analysts (16 of 24) rate Coach a buy. This marks a small improvement, as the number of buy ratings has risen slightly over the past three months.

The company's closest competitor in the retail (apparel) industry is Guess (GES). Analysts are more optimistic about Coach than about Guess. Only four out of 11 analysts rate the latter a buy.

comments powered by Disqus

Trading Center