Will Limited Brands' Earnings Beat Estimate? - Analyst Blog
22 May 2013 - 1:10AM
Zacks
L Brands, Inc.
(LTD), a specialty retailer of women’s intimate and other apparel,
beauty and personal care products, is set to report its
first-quarter fiscal 2013 results on May 22. In the last quarter it
posted a positive surprise of 1.2%. Let’s see how things are
shaping up for this announcement.
Growth Factors this
Past Quarter
Limited Brands’ sustained focus on
cost containment, inventory management, and merchandise initiatives
have kept it afloat in a sluggish consumer environment. The
company’s Bath & Body Works segment is gaining traction, driven
by a rise in store transactions, enhancement in the direct channel
business and growth in new stores. Victoria’s Secret Stores has
been performing well and the company is also revamping its La Senza
brand.
Earnings
Whispers?
Our proven model does not
conclusively show that Limited Brands is likely to beat earnings
this quarter. That is because a stock needs to have both a positive
Earnings ESP (Read: Zacks Earnings ESP: A Better Method)and a Zacks
Rank of #1, #2 or #3 for this to happen. This is not the case here
as you will see below.
Zacks ESP: ESP for
Limited Brands is 0.00%. This is because the Most Accurate Estimate
stands at 46 cents, which is in line with the Zacks Consensus
Estimate.
Zacks Rank #3
(Hold): Limited Brands’ Zacks Rank #3 (Hold) lowers the
predictive power of ESP because the Zacks Rank #3 when combined
with a 0.00% ESP makes surprise prediction difficult. We caution
against stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going
into the earnings announcement, especially when the company is
seeing negative estimate revisions momentum.
Other Stocks to
Consider
Here are some other companies you
may want to consider as our model shows they have the right
combination of elements to post an earnings beat:
Flowers Foods,
Inc. (FLO) with an Earnings ESP of +9.38% and a Zacks Rank
#1 (Strong Buy).
J&J Snack Foods
Corp. (JJSF) with an Earnings ESP of +0.90% and a Zacks
Rank #2 (Buy).
ConAgra Foods,
Inc. (CAG) with an Earnings ESP of +1.70% and a Zacks Rank
#3 (Hold).
CONAGRA FOODS (CAG): Free Stock Analysis Report
FLOWERS FOODS (FLO): Free Stock Analysis Report
J&J SNACK FOODS (JJSF): Free Stock Analysis Report
L BRANDS INC (LTD): Free Stock Analysis Report
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