Limited Brands Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Limited Brands Inc. (NYSE:LTD) will unveil its latest earnings on Monday, November 14, 2011. Limited Brands 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 24 cents per share, a rise of 33.3% 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 22 cents. Between one and three months ago, the average estimate moved up. It has risen from 23 cents during the last month. Analysts are projecting profit to rise by 21.8% versus last year to $2.51.

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 48 cents per share against a mean estimate of net income of 46 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $2.16 billion in revenue this quarter, a rise of 9.1% from the year ago quarter. Analysts are forecasting total revenue of $10.46 billion for the year, a rise of 8.8% from last year’s revenue of $9.61 billion.

Analyst Ratings: Analysts are bullish on this stock with nine analysts rating it as a buy, none rating it as a sell and seven rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the second quarter, profit rose 29.8% to $231 million (73 cents a share) from $178 million (54 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 9.6% to $2.46 billion from $2.24 billion.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 46% in the first quarter and 27.2% in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue rose 14.8% in the first quarter from the year earlier, climbed 12.8% in the fourth quarter of the last fiscal year from the year-ago quarter and 11.6% in the third 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 August 17, 2011 to November 10, 2011, the stock price had risen $8.16 (23.9%) from $34.15 to $42.31. The stock price saw one of its best stretches over the last year between September 9, 2011 and September 20, 2011 when shares rose for eight-straight days, rising 12.7% (+$4.64) 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% (-$2.46) over that span. Shares are up $12.10 (+40.1%) year to date.

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

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