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Polo Ralph Lauren Second Quarter Earnings Preview
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Analysts are expecting a drop in profit for Polo Ralph Lauren (NYSE:RL) when it reports its results for the second quarter on Wednesday, October 31, 2012. The company reported profit of $2.46 a year ago, but the current consensus estimate anticipates earnings per share of $2.14.
In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: Earnings: Quality Means Everything
What to Expect: Analysts are projecting earnings of $2.14 per share for Polo Ralph Lauren, 13% less than a year ago, when the company reported earnings of $2.46 per share.
The consensus estimate hasn't changed in the last month, but it has dropped from $2.48 three months ago. For the fiscal year, analysts are projecting earnings of $7.86 per share.
Revenue for the quarter is expected to be $1.84 billion, short of last year's reported figure of $1.9 billion by 3.4%. For the fiscal year, expected revenue is $7.16 billion.
Company Performance: For the past three quarters, revenue has been increasing. It hit $1.59 billion in first quarter, a 4.4% increase. Previously, revenue went up 13.7% in the fourth quarter of the last fiscal year and 16.6% in the third quarter of the last fiscal year.
RL is in line with the industry average with a P/E ratio of 21.3. One of the most important estimates of stock market valuation is the price/earnings ratio (P/E ratio). To determine the P/E ratio, an investor divides the market price of the stock by the earnings-per-share (EPS) of the stock. SEE: Understanding The P/E Ratio
Over the past quarter, the stock price has risen to $153.75 from $147.11 on July 30, 2012. Polo Ralph Lauren's worst recent stretch was when its stock price fell $8.06 per share between September 14, 2012 and October 12, 2012.
The Competition: Polo Ralph Lauren designs and sells premium lifestyle products, including apparel, accessories, fragrances and home furnishings. Eight of 13 analysts rate Polo Ralph Lauren a hold. This rating hasn't changed in three months.
The company's closest competitor in the apparel/accessories industry is VF (VFC). Analysts are less optimistic about Polo Ralph Lauren than about VF. Thirteen out of 19 analysts rate the latter a buy compared to five of 13 for the former.
In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: Earnings: Quality Means Everything
What to Expect: Analysts are projecting earnings of $2.14 per share for Polo Ralph Lauren, 13% less than a year ago, when the company reported earnings of $2.46 per share.
The consensus estimate hasn't changed in the last month, but it has dropped from $2.48 three months ago. For the fiscal year, analysts are projecting earnings of $7.86 per share.
Revenue for the quarter is expected to be $1.84 billion, short of last year's reported figure of $1.9 billion by 3.4%. For the fiscal year, expected revenue is $7.16 billion.
Company Performance: For the past three quarters, revenue has been increasing. It hit $1.59 billion in first quarter, a 4.4% increase. Previously, revenue went up 13.7% in the fourth quarter of the last fiscal year and 16.6% in the third quarter of the last fiscal year.
Over the past quarter, the stock price has risen to $153.75 from $147.11 on July 30, 2012. Polo Ralph Lauren's worst recent stretch was when its stock price fell $8.06 per share between September 14, 2012 and October 12, 2012.
The Competition: Polo Ralph Lauren designs and sells premium lifestyle products, including apparel, accessories, fragrances and home furnishings. Eight of 13 analysts rate Polo Ralph Lauren a hold. This rating hasn't changed in three months.
The company's closest competitor in the apparel/accessories industry is VF (VFC). Analysts are less optimistic about Polo Ralph Lauren than about VF. Thirteen out of 19 analysts rate the latter a buy compared to five of 13 for the former.
by
Investopedia Staff
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