Limited Brands Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Limited Brands Inc. (NYSE:LTD) will unveil its latest earnings on Wednesday, August 17, 2011. Limited Brands, Inc. is a specialty retailer of women’s apparel, beauty and personal care products and accessories operating under various trade names.

Limited Brands Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 46 cents per share, a rise of 27.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 43 cents. Between one and three months ago, the average estimate moved up, and has risen from 44 cents during the last month. For the year, analysts are projecting profit of $2.47 per share, a rise of 19.9% from last year.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked net income of 40 cents per share versus a mean estimate of profit of 39 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $2.44 billion in revenue this quarter, a rise of 8.9% from the year ago quarter. Analysts are forecasting total revenue of $10.38 billion for the year, a rise of 8% from last year’s revenue of $9.61 billion.

Analyst Ratings: Analysts are bullish on Limited Brands as eight analysts rate it as a buy, one rates it as a sell and seven rate it as a hold.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 46% while it rose 27.2% in the fourth quarter of the last fiscal year and more than fourfold in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 14.8% to $2.22 billion in first quarter. The figure rose 12.8% in the fourth quarter of the last fiscal year from the year earlier, climbed 11.6% in the third quarter of the last fiscal year from the year-ago quarter and 8.5% in the second quarter of the last fiscal year.

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).

Stock Price Performance: During May 18, 2011 to August 12, 2011, the stock price had fallen $7.66 (-18.1%) from $42.23 to $34.57. The stock price saw one of its best stretches over the last year between March 31, 2011 and April 11, 2011 when shares rose for eight-straight days, rising 13.9% (+$4.54) over that span. It saw one of its worst periods between December 30, 2010 and January 7, 2011 when shares fell for seven-straight days, falling 8.1% (-$2.49) over that span. Shares are up $4.19 (+13.8%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.