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Ascena Retail Group Inc. (NASDAQ:ASNA) is scheduled to report its Q4 2012 results on September 19, 2012, before market opens. The street expects EPS and revenue of $0.29 and $779.66M, respectively.

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

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Recent EPS Actuals vs. Estimates

In the last quarter it reported $0.34 EPS, failing to meet analyst estimates of $0.36.

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The consensus EPS estimate is $0.29 based on 10 analysts' estimates, up from $0.24 a year ago. Revenue estimates are $779.66M, up from $725.80M a year ago. The median target price by analysts for the stock is $25.00.

Average recommendation: Buy

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On June 11, 2012, FBR Capital upgraded the company from Mkt Perform to Outperform.

Latest News

  • On June 15, 2012, Ascena Retail Group Inc announced that it has completed its acquisition of Charming Shoppes, Inc., a apparel retailer specializing in women's plus-size apparel.
  • On May 31, 2012, Ascena Retail Group reported financial results for its fiscal third quarter and nine months ended April 28, 2012. Net income for the third quarter of Fiscal 2012 was $49.4 million, representing a slight decrease to the year-ago quarter's net income of $51.8 million. Earnings per share for the third quarter of Fiscal 2012 decreased slightly to $0.31 per diluted share, compared to $0.32 of earnings per diluted share for the third quarter of Fiscal 2011. The decrease in net income and earnings per share for the third quarter of Fiscal 2012 was entirely attributable to the incurrence of $6.8 million, or $0.03 per diluted share, of costs relating to the pending acquisition of Charming Shoppes, Inc.
  • On May 2, 2012, Ascena Retail Group Inc and Charming Shoppes, Inc. announced that they have entered into a definitive agreement under which Ascena will acquire Charming Shoppes in a cash transaction valued at approximately $890 million.

Competitors

American Eagle Outfitters (NYSE:AEO), Aeropostale (NYSE:ARO), Buckle (NYSE:BKE), Kohl's (NYSE:KSS), and Macy's (NYSE:M) are considered major competitors for Ascena and the table below provides the key metrics for these companies and the industry.

Ascena Retail Group 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.

ASNA Chart

ASNA data by YCharts

Competitors' Latest Development

  • On September 12, 2012, American Eagle Outfitters Inc announced that its board of directors declared a special cash dividend of $1.50 per share and a regular quarterly dividend of $0.11 per share.
  • On September 7, 2012, American Eagle Outfitters Inc announced that longer term, it is looking to be in the position, nothing is perfectly linear, but the Company is looking to be in the position to deliver between 7% and 9% revenue CAGR, 12% to 15% EBIT CAGR, and getting return on invested capital, which has been in the high single digits to low teens up into the mid to high teens consistently year on year, and getting operating margins kind of maintained within that 15% range.
  • On August 22, 2012, American Eagle Outfitters Inc announced that for the third quarter of 2012, it expects EPS from continuing operations to be in the range of $0.37 to $0.38 per diluted share (NYSEARCA:EPS).
  • On August 17, 2012, Aeropostale Inc announced that for the third quarter of 2012, it expects earnings per share to be in the range of $0.25 to $0.30 per share. According to I/B/E/S estimates, analysts were expecting the Company to report EPS of $0.38 for the third quarter of 2012.
  • On August 9, 2012, Kohl's Corp announced that for third quarter of 2012, it expects earnings per share in the range of $0.83 to $0.89 per diluted share. The guidance is based on total sales growth of 1% to 3% and comparable store sales growth of flat to 2% and includes expected third quarter share repurchases of $300 million.
  • 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 1, 2012, American Eagle Outfitters, Inc. announced that for second quarter of 2012, it is raising adjusted EPS outlook to $0.19 to $0.21.
  • 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 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, Kohl's Corporation announced that it now expect second quarter 2012 comparable store sales to be modestly negative.
  • 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, 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 10, 2012, Kohl's Corporation announced that for the second quarter of 2012, it expects earnings of $0.96 to $1.02 per diluted share. The guidance is based on total sales growth of 2% to 3% and comparable store sales growth of flat to 1% and includes expected second quarter share repurchases of $250 million.
  • 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, 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 2, 2012, American Eagle Outfitters, Inc. announced that for the first quarter of 2012, it expects earnings to be in the range of $0.18-$0.20 per diluted share .

Technical Overview


The stock has a market capitalization of $3.29B and is currently trading at $21.38 with a 52 week range of $12.00 - $22.62. The stock's year-to-date performance has been 43.88%. It is currently trading above 20, 50 and 200 SMA.

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

Source: Earnings Preview: Ascena Retail Group Reports On September 19