Steven Madden Ltd. Third Quarter Earnings Sneak Peek

Steven Madden, Ltd. (NASDAQ:SHOO) will unveil its latest earnings on Thursday, November 1, 2012. Steven Madden designs, sources, markets and retails women’s, men’s and children’s shoes for sale through its wholesale and retail channels.

Steven Madden, Ltd. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 90 cents per share, a rise of 21.6% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 20.4% versus last year to $2.71.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the second quarter, it reported net income of 67 cents per share versus a mean estimate of 63 cents. Two quarters ago, it reported profit of 50 cents per share.

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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. The company regressed in this liquidity measure from 2.36 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 67.5% to $227.8 million while assets rose 54.9% to $497.5 million.

A Look Back: In the second quarter, profit rose 13.1% to $26.9 million (61 cents a share) from $23.8 million (55 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 38% to $288.7 million from $209.2 million.

Wall St. Revenue Expectations: On average, analysts predict $353.9 million in revenue this quarter, a rise of 12.8% from the year-ago quarter. Analysts are forecasting total revenue of $1.22 billion for the year, a rise of 26% from last year’s revenue of $968.5 million.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 61% over the last four quarters.

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 34.9% in the fourth quarter of the last fiscal year and 22.5% in the first quarter before increasing again in the second quarter.

Stock Price Performance: Between August 2, 2012 and October 26, 2012, the stock price rose $3.30 (8.5%), from $38.96 to $42.26. It saw one of its worst periods between June 20, 2012 and July 2, 2012 when shares fell for nine straight days, dropping 14.2% (-$5.26) over that span.

Analyst Ratings: With six analysts rating the stock a buy, none rating it a sell and two rating the stock a hold, there are indications of a bullish stance by analysts.

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

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