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Limited Brands, Inc. (LTD) is scheduled to report its Q2 2012 results on August 15, 2012, after the bell. The street expects EPS and revenue of $0.47 and $2.38B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from LTD and the news from its closest competitors.

Limited Brands, Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

In the last four quarters the company has met or beaten analysts' estimates. In the last quarter it reported $0.41 EPS, just above analyst estimates of $0.40.

Limited Brands, Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.47 based on 20 analysts' estimates, down from $0.48 a year ago. Revenue estimates are $2.38B, down from $2.46B a year ago. The median target price by analysts for the stock is $51.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On July 17, 2012, Robert W. Baird upgraded the company from Neutral to Outperform.
  • On July 9, 2012, Argus downgraded the company from Buy to Hold.
  • On April 9, 2012, Barclays reiterated Equal Weight rating for the company.
  • On February 21, 2012, Barclays Capital reiterated Equal Weight rating for the company.

Latest News

  • On August 2, 2012, Limited Brands, Inc. announced that it expects to report the second quarter of 2012, adjusted earnings per share (EPS) of $0.46-$0.48 cents versus previous guidance of $0.40-$0.45 cents.
  • On August 2, 2012, Limited Brands, Inc. announced that its Board of Directors has declared a special dividend of $1 per share and its regular quarterly dividend of $0.25 per share, both of which will be paid on September 7, 2012, to shareholders of record at the close of business on August 23, 2012.
  • On July 5, 2012, Limited Brands, Inc. reported a comparable store sales increase of 7 percent for the five weeks ended June 30, 2012, compared to the five weeks ended July 2, 2011. The company reported net sales of $1.077 billion for the five weeks ended June 30, 2012, compared to net sales of $1.080 billion last year.
  • On May 31, 2012, Limited Brands, Inc. reported a comparable store sales increase of 6 percent for the four weeks ended May 26, 2012, compared to the four weeks ended May 28, 2011. The company reported net sales of $671.9 million for the four weeks ended May 26, 2012, compared to net sales of $717.4 million last year.
  • On May 25, 2012, Limited Brands, Inc. announced the declaration of its regular quarterly dividend of $0.25 per share payable on June 22, 2012, to shareholders of record at the close of business on June 8, 2012.
  • On May 16, 2012, Limited Brands, Inc. announced that for the second quarter of 2012, it expects earnings per share to be $0.40 to $0.45. For fiscal 2012, it expects earnings per share of $2.63-$2.83.
  • On May 3, 2012, Limited Brands, Inc. announced that for first quarter of 2012, it expects earnings per share in the range of $0.38-$0.40 compared to previous guidance of $0.35 to $0.40.
  • On February 22, 2012, Limited Brands, Inc. announced that it expects fiscal 2012 earnings per share to be between $2.60 and $2.80, including earnings per share between $0.35 and $0.40 in the first quarter of 2012.

Competitors

Chico's FAS (CHS), Coldwater Creek (CWTR), Gap (GPS), Hanesbrands (HBI), and Macy's (M) are peers for comparison for Limited Brands and the table below provides the key metrics for these companies and the industry.

Limited Brands, Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

LTD Chart

LTD data by YCharts

Competitors' Latest Development

  • On August 8, 2012, Macy's Inc raised earnings guidance for fiscal 2012 to a range of $3.30 to $3.35 per diluted share, compared with previous guidance for earnings per diluted share of $3.25 to $3.30. Guidance for same-store sales in fiscal 2012 remains unchanged at an increase of approximately 3.7%. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $3.36 for fiscal 2012.
  • On August 2, 2012, The Gap, Inc. announced that for second quarter of 2012, it expects diluted earnings per share to be in the range of $0.47 to $0.48, compared with $0.35 for the second quarter last year.
  • On July 31, 2012, Hanesbrands Inc announced that for fiscal 2012, it expects earnings per share in the range of $2.50 to $2.60 and net sales of $4.52 billion to $4.57 billion.
  • On July 5, 2012, Macy's Inc reaffirmed fiscal 2012 guidance and expects same store sales to rise by approximately 3.7%, with earnings per diluted share in the range of $3.25 to $3.30. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $3.37 for fiscal 2012.
  • On May 30, 2012, Reuters reported that as part of the restructuring, Hanesbrands Inc said it has agreed to sell its European imagewear division to an affiliate of the Netherlands based Smartwares B.V. for EUR15 million ($18.80 million).
  • On May 18, 2012, Macy's Inc announced that it declared a regular quarterly dividend of $0.20 per share on Macy's common stock, payable July 2, 2012, to shareholders of record at the close of business on June 15, 2012.
  • On May 17, 2012, The Gap, Inc. announced that its Board of Directors authorized a quarterly dividend of $0.125 per share payable on or after July 24, 2012 to shareholders of record at the close of business on July 3, 2012.
  • On May 17, 2012, The Gap, Inc. announced that the Company raised its guidance for fiscal 2012 diluted earnings per share to be in the range of $1.78 to $1.83.
  • On May 16, 2012, Chico's FAS, Inc. announced that for fiscal 2012, it expects total sales of approximately $2.5 billion to $2.6 billion, including comparable sales growth at a mid-single digit percent.
  • On May 9, 2012, Macy's Inc announced that it continues to expect same-store sales to grow by approximately 3.5% for the remainder of fiscal 2012. When added to the first quarter's reported results, same-store sales growth for fiscal 2012 as a whole now is expected to be approximately 3.7% -- slightly higher than previous guidance for a same-stores sales increase of approximately 3.5% in fiscal 2012.
  • On May 3, 2012, The Gap, Inc. announced that for first quarter of 2012, it expects earnings per share in the range of $0.44 to $0.46. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report EPS of $0.40 for first quarter of 2012.
  • On April 19, 2012, Hanesbrands Inc. reaffirmed fiscal 2012 guidance and expects 2% to 4% net sales growth and earnings per share of $2.50 to $2.60. The Company reported revenue of $4.637 billion in fiscal 2011.
  • On March 19, 2012, Dow Jones reported that The Gap, Inc. (Gap) has opened its first store in South Africa. The expansion in the region comes as the Company is closing stores in North America and opening outlets in other emerging markets.
  • On March 7, 2012, Hanesbrands Inc. announced that for fiscal 2012, it expects diluted earnings per share of $2.50 to $2.60. According to I/B/E/S Estimates, analysts on an average are expecting the Company to report EPS of $2.54 for fiscal 2012.
  • On March 1, 2012, Chico's FAS, Inc. announced that its Board of Directors has declared a quarterly cash dividend of $0.0525 per share on its common stock. The dividend will be payable on March 26, 2012 to Chico's FAS shareholders of record at the close of business on March 12, 2012.
  • On February 23, 2012, The Gap, Inc. announced that it has approved a new $1 billion share repurchase authorization and approved a plan to increase the annual dividend per share by 11%, from $0.45 in fiscal year 2011 to $0.50 for fiscal year 2012.
  • On February 23, 2012, The Gap, Inc. announced that for fiscal 2012, it expects diluted earnings per share to be in the range of $1.75 - $1.80. According to I/B/E/S Estimates, analysts were expecting the Company to report EPS of $1.79 for fiscal 2012.
  • On February 21, 2012, Macy's Inc announced that it is assuming earnings per share on a diluted basis of $3.25 to $3.30 for fiscal 2012. According to I/B/E/S Estimates, analysts on an average are expecting the Company to report EPS of $3.26 for fiscal 2012.
  • On February 15, 2012, Hanesbrands Inc. announced that for first quarter of 2012, it expects net sales to be approximately $1 billion and a loss per share of up to $0.35. For fiscal 2012, it expects sales to increase 2% to 4% over 2011 and earnings per share in the range of $2.50 to $2.60 including the approximate $0.30 loss in imagewear.

Technical Overview


The stock has a market capitalization of $14.45B and is currently trading at $49.62 with a 52 week range of $32.88 - $51.84. The stock's year-to-date performance has been 24.39%. It is currently trading above 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Limited Brands