Ascena Retail Group Earnings Preview

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Watch Ascena Retail Group's (NAS: ASNA) earnings report to see if it can beat analyst expectations for the third consecutive quarter. The company will unveil its latest earnings Wednesday. Ascena operates women's and girls' apparel specialty stores, principally under the names Dressbarn, Maurice's, and Justice.

What analysts say:

  • Buy, sell, or hold?: Analysts strongly back Ascena Retail Group, with eight of 10 rating it a buy and the remainder rating it a hold. Analysts like Ascena Retail Group better than competitor Chico's FAS overall. That rating hasn't budged in three months as analysts have remained steadfast in their opinion of the stock.
  • Revenue Forecasts: On average, analysts predict $713.4 million in revenue this quarter. That would represent a rise of 0.4% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.49 per share. Estimates range from $0.44 to $0.53.

What our community says:
CAPS All-Stars are solidly backing the stock with 94.4% awarding it an "outperform" rating. The community at large backs the All Stars with 88.2% granting it a rating of "outperform." Fools are keen on Ascena Retail Group and haven't been shy with their opinions lately, logging 105 posts in the past 30 days. Despite the majority sentiment in favor of Ascena Retail Group, the stock has a middling CAPS rating of three out of five stars.

Management:
Ascena Retail Group's profit has risen year over year by an average of 71.1% over the past five quarters. Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters.

Quarter

Q3

Q2

Q1

Q4

Gross Margin

44.4%

41%

43.1%

41%

Operating Margin

12.0%

9.5%

10.9%

8.4%

Net Margin

7.2%

5.7%

6.7%

5.9%

For all our Ascena Retail Group-specific analysis, including earnings and beyond, add Ascena Retail Group to My Watchlist.

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At the time this article was published

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