Earnings Preview: Ralph Lauren Corporation

May.18.12 | About: Polo Ralph (RL)

Company Profile

Ralph Lauren Corporation, (NYSE:RL) formerly Polo Ralph Lauren Corporation, is engaged in the design, marketing and distribution of products, including men's, women's and children's apparel, accessories (including footwear), fragrances and home furnishings. The company operates in three segments: Wholesale, Retail and Licensing.

Ralph Lauren Corp is scheduled to report its fourth-quarter earnings results on May 22, 2012, before market open.

Technical Overview

Ralph Lauren has a market cap of $13.85 billion and it is currently trading around $147.85 with a 52-week range of $104.70 to $182.28. The stock has 9.05% price performance for the year 2012. The following table provides the key financial ratios for Ralph Lauren:

Key Ratio

Value

Current Ratio

2.89

PEG

1.5

P/E

21.76

Forward P/E

17.94

Profit Margin

9.90%

Return On Assets (ROA)

12.77%

Return On Equity (ROE)

19.01%

Click to enlarge

Recent News

  • On April 28, 2012 EVA Dimensions, LLC upgraded Ralph Lauren Corp from HOLD to OVERWEIGHT.
  • On April 9, 2012 Ned Davis Research upgraded Ralph Lauren Corp from NEUTRAL to BUY.
  • On April 7, 2012 Columbine Capital Services, Inc. downgraded Ralph Lauren from NEUTRAL to UNFAVORABLE.
  • On April 5, 2012, Ralph Lauren has been initiated with an Outperform at CLSA and set the Price target as $200.
  • On Mar. 19, 2012, Ralph Lauren announced that its Board of Directors has declared a regular quarterly dividend of $0.20 per share on Ralph Lauren Corporation Common Stock. The dividend is payable on April 13, 2012 to shareholders of record at the close of business on March 30, 2012.
  • On February 28, 2012 Thomson Financial - Gradient upgraded Ralph Lauren from SELL to HOLD.
  • On February 18, 2012 EVA Dimensions, LLC upgraded Ralph Lauren from UNDERWEIGHT to HOLD.
  • On February 17, 2012 Ford Equity Research downgraded Ralph Lauren from FAVORABLE to NEUTRAL.
  • On February 9, 2012, Barclays Capital Raised Polo Ralph Lauren Corp FY 13 Estimate To 8.25 from 8.00.

Analyst Guidance and Earnings History

The first-quarter revenue is expected to be $1.60 billion when compared with $1.43 billion for the same quarter last year. Earnings per share for the first quarter are expected to be 83 cents a share, up from 74 cents a share in the year-ago period.

The average price target from analyst for Ralph Lauren is $190.69 with average rating OVERWEIGHT

Out of the last 4 quarters, Ralph Lauren has met or exceeded the EPS estimates 3 times. The following chart shows the Analyst estimates history and the actual EPS results:

Sources: Some of the data is taken from Google Finance, Yahoo Finance, Finviz and investor sites.


Disclosure: I have no positions in any stocks mentioned, but may initiate a short position in RL over the next 72 hours.

Disclaimer: I am not a registered investment advisor and do not provide specific investment advice. The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. It is up to investors to make the correct decision after necessary research.