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Limited Brands Second Quarter Earnings Preview
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LTD
On Wednesday, August 15, 2012, Limited Brands (NYSE:LTD) will report its second quarter earnings.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: Surprising Earnings Results
What to Expect: Analysts anticipate that Limited Brands will report earnings of 48 cents per share, matching that number from a year ago.
The consensus estimate has risen over the past month, from 47 cents, but it is still below the estimate of 50 cents from three months ago. For the fiscal year, analysts are projecting earnings of $2.84 per share.
Limited Brands is expected to report revenue of $2.35 billion for the quarter, down by 4.4% from last year's figure of $2.46 billion. The anticipated revenue for the fiscal year is $10.32 billion.
Company Performance: Relative to the industry P/E ratio of 23.31, LTD's 19.1 is low. A low P/E might arise due to substantial inherent risk of the firm and its operations, poor return on equity, or improper valuation of the market. Price/earnings ratios (P/E ratios) provide a measure of the relative value of a stock. A high P/E ratio indicates a stock that is expensive, while a low P/E ratio indicates a stock that is cheap. SEE: The P/E Ratio: A Good Market-Timing Indicator
Over the past quarter, the stock price has risen to $49.55 from $48 on May 14, 2012. Limited Brands' best recent streak was when its price gained $3.67 per share between August 1, 2012 and August 7, 2012.
The Competition: Limited Brands is a specialty retailer of women's apparel, beauty, and personal care products and accessories operating under various trade names. Most analysts (10 of 19) rate Limited Brands a buy. They are slightly more optimistic about the stock recently, 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 Ascena Retail (ASNA). Analysts are less optimistic about Limited Brands than about Ascena Retail. Seven out of 10 analysts rate the latter a buy.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: Surprising Earnings Results
What to Expect: Analysts anticipate that Limited Brands will report earnings of 48 cents per share, matching that number from a year ago.
The consensus estimate has risen over the past month, from 47 cents, but it is still below the estimate of 50 cents from three months ago. For the fiscal year, analysts are projecting earnings of $2.84 per share.
Limited Brands is expected to report revenue of $2.35 billion for the quarter, down by 4.4% from last year's figure of $2.46 billion. The anticipated revenue for the fiscal year is $10.32 billion.
Over the past quarter, the stock price has risen to $49.55 from $48 on May 14, 2012. Limited Brands' best recent streak was when its price gained $3.67 per share between August 1, 2012 and August 7, 2012.
The Competition: Limited Brands is a specialty retailer of women's apparel, beauty, and personal care products and accessories operating under various trade names. Most analysts (10 of 19) rate Limited Brands a buy. They are slightly more optimistic about the stock recently, 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 Ascena Retail (ASNA). Analysts are less optimistic about Limited Brands than about Ascena Retail. Seven out of 10 analysts rate the latter a buy.
by
Investopedia Staff
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