Earnings Preview: The Buckle, Inc.

Aug.13.12 | About: The Buckle, (BKE)

The Buckle, Inc. (NYSE:BKE) is scheduled to report its Q2 2012 results on August 16, 2012, before market opens. The Street expects EPS and revenue of $0.49 and $216.07M, respectively.

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

Buckle Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last three quarters. In the last quarter, it reported $0.79 EPS, beating analyst estimates of $0.76.

Buckle Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.49 based on 12 analysts' estimates, just below $0.50 from a year ago. Revenue estimates are $216.07M, just above from $212.38M a year ago. The median target price by analysts for the stock is $41.00.

Average recommendation: Hold

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On July 29, 2012, Janney Mntgmy Scott downgraded the company from Neutral to Sell.
  • On July 24, 2012, KeyBanc Capital Mkts downgraded the company from Hold to Underweight.
  • On July 5, 2012, Imperial Capital reiterated In-line rating for the company.

Latest News

  • On August 2, 2012, The Buckle, Inc. announced that comparable store net sales, for stores open at least one year, for the four-week period ended July 28, 2012 decreased 0.1 percent from comparable store net sales for the four-week period ended July 30, 2011. Net sales for the four-week fiscal month ended July 28, 2012 increased 2.4 percent to $66.2 million from net sales of $64.7 million for the prior year four-week fiscal month ended July 30, 2011.
  • On July 5, 2012, The Buckle, Inc. announced that comparable store net sales, for stores open at least one year, for the five-week period ended June 30, 2012 decreased 2.5 percent from comparable store net sales for the five-week period ended July 2, 2011. Net sales for the five-week fiscal month ended June 30, 2012 decreased 0.3 percent to $79.4 million from net sales of $79.6 million for the prior year five-week fiscal month ended July 2, 2011.
  • On June 4, 2012, The Buckle Inc announced that at its quarterly meeting of the Board of Directors, held on June 1, 2012, the Board authorized a $0.20 per share quarterly dividend to be paid to shareholders of record at the close of business on July 13, 2012, with a payment date of July 27, 2012.
  • On May 31, 2012, The Buckle, Inc. announced that comparable store net sales, for stores open at least one year, for the four-week period ended May 26, 2012 increased 0.2 percent from comparable store net sales for the four-week period ended May 28, 2011. Net sales for the four-week fiscal month ended May 26, 2012 increased 2.7 percent to $69.9 million from net sales of $68.1 million for the prior year four-week fiscal month ended May 28, 2011.

Competitors

Abercrombie & Fitch (NYSE:ANF), Aeropostale (NYSE:ARO), Gap (NYSE:GPS), Limited Brands (LTD), and Urban Outfitters (NASDAQ:URBN) are considered major competitors for Buckle and the table below provides the key metrics for these companies and the industry.

Buckle 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.

BKE Chart

BKE data by YCharts

Competitors' Latest Development

  • 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 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, 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 August 1, 2012, Abercrombie & Fitch announced that for the second quarter of 2012, it expects diluted earnings per share of approximately $0.15-$0.18. Based on a lower sales trend than previously projected, the Company now expects fiscal 2012, diluted earnings per share of approximately $2.50 to $2.75. This projection assumes same store sales to be down 10% for the second half of the year, consistent with the second quarter trend.
  • 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 17, 2012, Aeropostale Inc announced that for second quarter of 2012, it expects earnings in the range of $0.03 to $0.05 per diluted share . This compares to earnings of $0.04 per diluted share for the second quarter of 2011, which included a non-recurring pre-tax benefit to the company's gross profit of $8.7 million, or $0.06 per diluted share, resulting from the resolution of a dispute with one of the Company's merchandise vendors surrounding prior period allowances.
  • 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, 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, Aeropostale Inc announced that based on the better than expected performance for the quarter, the Company new expects first quarter 2012 earnings in the range of $0.12-$0.13 per diluted share, versus its previously issued guidance range of $0.08-$0.10 per diluted share.
  • 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 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 March 21, 2012, Urban Outfitters, Inc. announced that Eric Artz is stepping down as Chief Financial Officer effective April 3, 2012, and is being replaced by Frank Conforti, the Company's Chief Accounting Officer.
  • 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 8, 2012, Aeropostale Inc announced that for the first quarter of 2012, the Company expects earnings in the range of $0.08 to $0.10 per diluted share. According to I/B/E/S Estimates, analysts on an average were expecting the company to report EPS of $0.12 for the first quarter of 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 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.
  • On February 16, 2012, Abercrombie & Fitch announced that for fiscal 2012, it expects earnings per share in the range of $3.50-$3.75. According to I/B/E/S estimates, analysts were expecting the Company to report EPS of $3.48 for fiscal 2012.

Technical Overview


The stock has a market capitalization of $1.85B and is currently trading at $38.59 with a 52-week range of $33.97-$50.00. The stock's year-to-date performance has been -4.20%. It is currently trading above 50 SMA, but below 20 and 200 SMA.

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

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.