Limited Brands Beats on Revenue and Matches Expectations on EPS
Limited Brands (NYS: LTD) reported earnings on May 16. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 28 (Q1), Limited Brands beat slightly on revenue and met expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share dropped significantly.
Gross margin and operating margin improved, while net margin contracted.
Limited Brands booked revenue of $2.15 billion. The 12 analysts polled by S&P Capital IQ predicted a top line of $2.13 billion on the same basis. GAAP-reported sales were 2.9% lower than the prior-year quarter's $2.22 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.41. The 22 earnings estimates compiled by S&P Capital IQ forecast $0.41 per share. GAAP EPS of $0.41 for Q1 were 18% lower than the prior-year quarter's $0.50 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.9%, 390 basis points better than the prior-year quarter. Operating margin was 13.6%, 380 basis points better than the prior-year quarter. Net margin was 5.8%, 160 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.36 billion. On the bottom line, the average EPS estimate is $0.45.
Next year's average estimate for revenue is $10.33 billion. The average EPS estimate is $2.82.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 562 members rating the stock outperform and 100 members rating it underperform. Among 212 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 190 give Limited Brands a green thumbs-up, and 22 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Limited Brands is outperform, with an average price target of $49.35.
Can your portfolio provide you with enough income to last through retirement? You'll need more than Limited Brands. Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks." Click here for instant access to this free report.
- Add Limited Brands to My Watchlist.
At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.