Polo Ralph Lauren Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Polo Ralph Lauren (NYSE:RL) will unveil its latest earnings on Wednesday, October 31, 2012. Polo Ralph Lauren designs and sells premium lifestyle products, including apparel, accessories, fragrances and home furnishings.

Polo Ralph Lauren Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $2.14 per share, a decline of 13% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $2.48. Between one and three months ago, the average estimate moved down. It has been unchanged at $2.14 during the last month. For the year, analysts are projecting profit of $7.86 per share, a rise of 10.2% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 25 cents, coming in at net income of $2.03 a share versus the estimate of profit of $1.78 a share. It marked the fourth straight quarter of beating estimates.

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Stock Price Performance: Between August 1, 2012 and October 25, 2012, the stock price rose $11.42 (8%), from $142.33 to $153.75. The stock price saw one of its best stretches over the last year between July 12, 2012 and July 19, 2012, when shares rose for six straight days, increasing 11.2% (+$15.39) over that span. It saw one of its worst periods between November 14, 2011 and November 25, 2011 when shares fell for nine straight days, dropping 11.1% (-$17.31) over that span.

A Look Back: In the first quarter, profit rose 5.1% to $193.4 million ($2.03 a share) from $184.1 million ($1.90 a share) the year earlier, exceeding analyst expectations. Revenue rose 4.4% to $1.59 billion from $1.53 billion.

Wall St. Revenue Expectations: Analysts predict a decline of 3.2% in revenue from the year-earlier quarter to $1.84 billion.

Key Stats:

On the top line, the company is looking to build on three-straight revenue increases heading into this earnings announcement. Revenue increased 16.6% in the third quarter of the last fiscal year and 13.7% in the fourth quarter of the last fiscal year before climbing again in the first quarter.

Analyst Ratings: There are mostly holds on the stock with eight of 13 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.91 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.

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

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