The Warnaco Group, Inc. Second Quarter Earnings Sneak Peek

The Warnaco Group, Inc. (NASDAQ:WRC) will unveil its latest earnings on Monday, August 1, 2011. Warnaco Group, Inc. designs, sources, markets, licenses and distributes a line of intimate apparel, sportswear and swimwear worldwide.

The Warnaco Group, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 80 cents per share, a rise of 12.7% 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 85 cents. Between one and three months ago, the average estimate moved down and dropped from 81 cents during the last month. For the year, analysts are projecting profit of $4.08 per share, a rise of 15.3% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported net income of $1.10 per share versus a mean estimate of profit of $1.27 per share. In fourth quarter of the last fiscal year, the company beat estimates by one cent.

Get more Earnings Cheat Sheets with our in depth coverage of earnings season >>

Wall St. Revenue Expectations: On average, analysts predict $581 million in revenue this quarter, a rise of 11.9% from the year ago quarter. Analysts are forecasting total revenue of $2.56 billion for the year, a rise of 11.3% from last year’s revenue of $2.3 billion.

Analyst Ratings: six out of 11 analysts surveyed (54.5%) have a buy rating on Warnaco Group.. This is below the mean analyst rating of nine competitors, which average 71.9% buy ratings.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 14.5%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 17% from the year earlier quarter.

The decrease in profit in the first quarter breaks a streak of three consecutive quarters of year-over-year profit increases. Net income fell 8.2% in the first quarter from the year earlier, while the figure rose 74.1% in the fourth quarter of the last fiscal year, 39.9% in the third quarter of the last fiscal year and 68.5% in the second quarter of the last fiscal year.

Competitors to Watch: Polo Ralph Lauren Corp. (NYSE:RL), Hanesbrands Inc. (NYSE:HBI), Phillips-Van Heusen Corp. (NYSE:PVH), Wacoal Hldgs. Corp. (NASDAQ:WACLY).

Stock Price Performance: During June 27, 2011 to July 26, 2011, the stock price had risen $6.92 (13.9%) from $49.65 to $56.57. The stock price saw one of its best stretches over the last year between December 8, 2010 and December 17, 2010 when shares rose for eight-straight days, rising 7.6% (+$4.13) over that span. It saw one of its worst periods between May 27, 2011 and June 10, 2011 when shares fell for 10-straight days, falling 13.5% (-$7.52) over that span. Shares are up $1.50 (+2.7%) year to date.

(Source: Xignite Financials)

Get more Earnings Cheat Sheets with our in depth coverage of earnings season >>