Coach Earnings on Deck

S&P 500 (NYSE:SPY) component Coach (NYSE:COH) will unveil its latest earnings on Tuesday, October 23, 2012. Coach is an American marketer of accessories and gifts, including handbags, footwear, sunwear, travel bags, business cases, jewelry, clothing, fragrance, and watches.

Coach Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 75 cents per share, a rise of 2.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 86 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 75 cents during the last month. Analysts are projecting profit to rise by 9.1% compared to last year’s $3.85.

Past Earnings Performance: Last quarter, the company beat estimates by one cent, coming in at net income of 86 cents a share versus the estimate of profit of 85 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the fourth quarter of the last fiscal year, profit rose 24.2% to $251.4 million (86 cents a share) from $202.5 million (68 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 12% to $1.16 billion from $1.03 billion.

Wall St. Revenue Expectations: Analysts are projecting a rise of 10.5% in revenue from the year-earlier quarter to $1.16 billion.

Stock Price Performance: Between September 19, 2012 and October 17, 2012, the stock price dropped $3.56 (-5.9%), from $59.99 to $56.43. The stock price saw one of its best stretches over the last year between July 31, 2012 and August 8, 2012, when shares rose for seven straight days, increasing 14.3% (+$7.05) over that span. It saw one of its worst periods between May 2, 2012 and May 15, 2012 when shares fell for 10 straight days, dropping 11.1% (-$8.36) over that span.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 14.6% over the last four quarters.

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 14.5% in the second quarter of the last fiscal year and 21% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.51 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. The company regressed in this liquidity measure from 2.82 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 15.2% to $718.2 million while assets rose 2.6% to $1.8 billion.

Analyst Ratings: With 16 analysts rating the stock a buy, none rating it a sell and eight rating the stock a hold, there are indications of a bullish stance by analysts.

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

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