Limited Brands Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Limited Brands (NYSE:LTD) will unveil its latest earnings on Wednesday, August 15, 2012. Limited Brands is a specialty retailer of women’s apparel, beauty, and personal care products and accessories operating under various trade names.

Limited Brands Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 48 cents per share, no change from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 50 cents. Between one and three months ago, the average estimate moved down. It has risen from 47 cents during the last month. Analysts are projecting profit to rise by 9.2% versus last year to $2.84.

Past Earnings Performance: Last quarter, the company beat estimates by one cent, coming in at profit of 41 cents a share versus the estimate of net income of 40 cents a share. It marked the fourth straight quarter of beating estimates.

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Stock Price Performance: Between June 13, 2012 and August 9, 2012, the stock price had risen $7.60 (18.1%), from $41.95 to $49.55. The stock price saw one of its best stretches over the last year between January 30, 2012 and February 9, 2012, when shares rose for nine straight days, increasing 9.9% (+$4.07) over that span. It saw one of its worst periods between December 7, 2011 and December 19, 2011 when shares fell for nine straight days, dropping 14.3% (-$6.31) over that span.

Wall St. Revenue Expectations: Analysts are projecting a decline of 4.5% in revenue from the year-earlier quarter to $2.35 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.18 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: There are 10 out of 19 analysts surveyed (52.6%) rating Limited Brands a buy.

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

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