S&P 500 (NYSE:SPY) component VF (NYSE:VFC) will unveil its latest earnings on Monday, October 22, 2012. V.F. is an apparel company that designs and manufactures or sources from independent contractors a variety of apparel and footwear for all ages.
VF Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for profit of $3.49 per share, a rise of 21.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $3.57. Between one and three months ago, the average estimate moved down. It has risen from $3.48 during the last month. Analysts are projecting profit to rise by 18.5% versus last year to $9.53.
Past Earnings Performance: Last quarter, the company beat estimates by 17 cents, coming in at net income of $1.11 a share versus the estimate of profit of 94 cents a share. It marked the fourth straight quarter of beating estimates.
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A Look Back: In the second quarter, profit rose 20% to $155.3 million ($1.40 a share) from $129.4 million ($1.17 a share) the year earlier, exceeding analyst expectations. Revenue rose 16.4% to $2.14 billion from $1.84 billion.
Wall St. Revenue Expectations: Analysts are projecting a rise of 15.3% in revenue from the year-earlier quarter to $3.17 billion.
Stock Price Performance: Between August 20, 2012 and October 16, 2012, the stock price had risen $18.55 (12.4%), from $149.73 to $168.28. The stock price saw one of its best stretches over the last year between March 14, 2012 and March 22, 2012, when shares rose for seven straight days, increasing 1.4% (+$2.01) over that span. It saw one of its worst periods between May 2, 2012 and May 15, 2012 when shares fell for 10 straight days, dropping 11.7% (-$18.27) over that span.
With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 26.7% 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 more than fourfold in the fourth quarter of the last fiscal year and 7.2% in the first quarter before increasing again in the second quarter.
Analyst Ratings: With 13 analysts rating the stock a buy, none rating it a sell and six rating the stock a hold, there are indications of a bullish stance by analysts.
Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.89 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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