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Tickers in this Article: COH
Coach (NYSE:COH) will release its fourth quarter results on Tuesday, July 31, 2012. Analysts are expecting the company to report a profit of 85 cents a share, up from 68 cents a year ago.

A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: 5 Tricks Companies Use During Earnings Season

What to Expect: Coach is expected to report 85 cents per share, up 25% from a year ago when the company reported earnings of 68 cents per share.

For the fiscal year, analysts are projecting earnings of $3.53 per share.

Revenue is expected to exceed last year's figure of $1.03 billion by 16.3% and come in at $1.2 billion for the quarter. Coach is expected to report revenue of $4.81 billion for the fiscal year.

Company Performance: Revenue has risen for four consecutive quarters now. It rose 16.6% in the third quarter, 14.6% in the second quarter, 15.2% in the first quarter and 8.5% in the fourth quarter of the last fiscal year.

The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). A high or low P/E ratio is not good or bad in and of itself, but a company trading with a high P/E ratio must continue to post strong financial performance or its stock price is likely to fall. SEE: Investment Valuation Ratios: Price/Earnings Ratio

Since April 27, 2012, the stock price has fallen 22.4% to $57.35 from $73.91. Coach's best recent streak was when its price gained $4.85 per share between May 17, 2012 and May 29, 2012.

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