S&P 500 (NYSE:SPY) component Coach (NYSE:COH) will unveil its latest earnings on Tuesday, July 31, 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 85 cents per share, a rise of 25% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. For the year, analysts are projecting net income of $3.53 per share, a rise of 20.9% from last year.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 2 cents, reporting profit of 77 cents per share against a mean estimate of net income of 75 cents per share.
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A Look Back: In the third quarter, profit rose 21% to $225 million (77 cents a share) from $186 million (62 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 16.6% to $1.11 billion from $950.7 million.
Stock Price Performance: Between May 1, 2012 and July 26, 2012, the stock price fell $13.85 (-18.8%), from $73.57 to $59.72. The stock price saw one of its best stretches over the last year between September 9, 2011 and September 19, 2011, when shares rose for seven straight days, increasing 12% (+$6.41) 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.
Wall St. Revenue Expectations: Analysts are projecting a rise of 16.5% in revenue from the year-earlier quarter to $1.2 billion.
This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 13.8% in the first quarter and 14.5% in the second quarter before increasing again in the third quarter.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 8.5% in the fourth quarter of the last fiscal year, 15.2% in the first quarter and 14.6% in the second quarter before increasing again in the third quarter.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.82 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: With 17 analysts rating the stock a buy, none rating it a sell and six 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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