Abercrombie & Fitch Quarterly Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Abercrombie & Fitch Co. (NYSE:ANF) will unveil its latest earnings tomorrow Wednesday, August 15, 2012. Abercrombie & Fitch is an American specialty retailer company that, through its wholly-owned subsidiaries, operates stores and direct sales of casual apparel for men, women, and children.

Abercrombie & Fitch Co. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 17 cents per share, a decline of 51.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 40 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 35 cents during the last month. Analysts are projecting profit to rise by 10% versus last year to $2.54.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the first quarter, it reported profit of 3 cents per share versus a mean estimate of 2 cents. Two quarters ago, it reported net income of $1.12 per share.

Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?

A Look Back: In the first quarter, profit fell 88.1% to $3 million (3 cents a share) from $25.1 million (28 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 10.1% to $921.2 million from $836.7 million.

Stock Price Performance: Between May 15, 2012 and August 13, 2012, the stock price fell $13.44 (-29.27%), from $45.91 to $32.47. The stock price saw one of its best stretches over the last year between September 8, 2011 and September 19, 2011, when shares rose for eight straight days, increasing 9% (+$5.68) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 24.5% (-$11.65) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 8.6% in revenue from the year-earlier quarter to $995.7 million.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 17.5% over the last four quarters.

The company is trying to use this earnings announcement to rebound from income declines in the past two quarters. Net income dropped 78.9% in the fourth quarter of the last fiscal year and then again in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.04 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Analyst Ratings: There are mostly holds on the stock with 20 of 29 analysts surveyed giving that rating.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Additional Hot Stories:

Investors and Traders: Here are the BIGGEST IMMEDIATE LOSERS of Earnings Season

Is There Too Much Hope for These Stocks in the Housing Rebound?

Is Caterpillar’s Stock a BUY?