Limited Brands Inc. Earnings Cheat Sheet: Profits Climb By Double Figures Again

S&P 500 (NYSE:SPY) component Limited Brands Inc. (NYSE:LTD) reported its results for the third quarter. Limited Brands is a specialty retailer of women’s apparel, beauty, and personal care products and accessories operating under various trade names.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

Limited Brands Earnings Cheat Sheet for the Third Quarter

Results: Net income for the apparel store rose to $94.3 million (31 cents per share) vs. $61 million (18 cents per share) in the same quarter a year earlier. This marks a rise of 54.6% from the year earlier quarter.

Revenue: Rose 9.6% to $2.17 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: LTD reported adjusted net income of 25 cents per share. By that measure, the company beat the mean estimate of 24 cents per share. Analysts were expecting revenue of $2.16 billion.

Key Stats:

Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 0.1 percentage point to 36.1% from the year earlier quarter. Over that span, margins have grown on average 1.9 percentage points per quarter on a year-over-year basis.

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 29.8% and in the first quarter, the figure rose 46%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the second quarter, by one cent in the first quarter, and by one cent in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 9.6% to $2.46 billion in the second quarter. The figure rose 14.8% in the first quarter from the year earlier and climbed 12.8% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts appear increasingly optimistic about the company’s results for the next quarter. The average estimate for the fourth quarter has moved up from $1.41 a share to $1.42 over the last ninety days. The average estimate for the fiscal year is $2.51 per share, a rise from $2.47 ninety days ago.

Competitors to Watch: New York & Company, Inc. (NYSE:NWY), Express, Inc. (NYSE:EXPR), The Wet Seal, Inc. (NASDAQ:WTSLA), Christopher & Banks Corp. (NYSE:CBK), Chico’s FAS, Inc. (NYSE:CHS), Ann Inc (NYSE:ANN), Coldwater Creek Inc. (NASDAQ:CWTR), Ascena Retail Group Inc (NASDAQ:ASNA), Charming Shoppes, Inc. (NASDAQ:CHRS), and The Talbots, Inc. (NYSE:TLB).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

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