The Warnaco Group Inc. Third Quarter Earnings Sneak Peek

The Warnaco Group, Inc. (NYSE:WRC) will unveil its latest earnings on Thursday, November 3, 2011. Warnaco Group 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 profit of $1.08 per share, a rise of 3.8% 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 $1.24. Between one and three months ago, the average estimate moved down. It also has dropped from $1.09 during the last month. For the year, analysts are projecting net income of $4.04 per share, a rise of 14.1% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported profit of 82 cents per share against a mean estimate of net income of 74 cents per share. In the first quarter, it missed forecasts by 17 cents.

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Wall St. Revenue Expectations: On average, analysts predict $657.9 million in revenue this quarter, a rise of 10.2% 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: Analysts seem relatively indifferent about Warnaco Group with six of 11 analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit rose 52% to $45.5 million ($1.01 a share) from $29.9 million (65 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 13.9% to $591.4 million from $519.3 million.

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 increase in profit in the second quarter came after net income fell in the previous quarter. In the first quarter, net income fell 8.2%.

Competitors to Watch: Polo Ralph Lauren Corp. (NYSE:RL), Hanesbrands Inc. (NYSE:HBI), Phillips-Van Heusen Corp. (NYSE:PVH), Wacoal Hldgs. Corp. (NASDAQ:WACLY), Sears Holdings Corporation (NASDAQ:SHLD), Saks Incorporated (NYSE:SKS), Macy’s, Inc. (NYSE:M), Kohl’s Corporation (NYSE:KSS), Dillard’s, Inc. (NYSE:DDS), Nordstrom, Inc. (NYSE:JWN),, Inc. (NASDAQ:OSTK), Wal-Mart Stores, Inc. (NYSE:WMT), The TJX Companies (NYSE:TJX), Ross Stores (NASDAQ:ROST) and Target Corporation (NYSE:TGT).

Stock Price Performance: During September 30, 2011 to October 28, 2011, the stock price had risen $3.93 (8.5%) from $46.09 to $50.02. 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 down $5.05 (-9.2%) year to date.

(Source: Xignite Financials)

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