Is This the Turnaround L Brands Has Waited For?
Shares of L Brands surged after reported its most recent quarterly results late on Wednesday.
When L Brands Inc. (NYSE: LB) reported its most recent quarterly results after the markets closed on Wednesday, the company said that it had $0.14 in earnings per share (EPS) and $2.63 billion in revenue. That compared with consensus estimates calling for breakeven earnings on $2.56 billion in revenue, as well as the $0.17 per share and $2.63 billion posted in the same period from last year.
During the most recent quarter, comparable sales were flat compared to the quarter ended May 5, 2018. First-quarter comparable sales declined 5% at the Victoria’s Secret segment and increased 13% at Bath & Body Works.
Looking ahead to the 2019 full year, the company expects to see EPS in the range of $2.30 to $2.60, up from the previous range of $2.20 to $2.60. The consensus estimates are $2.39 in EPS and $13.14 billion in revenue for the year.
For the second quarter, L Brands expects to see EPS of $0.15 to $0.20, while consensus estimates call for $0.23, as well as $2.94 billion in revenue.
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Excluding Thursday’s move, L Brands had underperformed the broad markets, with the stock down 16% year to date. Over the past 52 weeks, the stock actually is down close to 37%.
Shares of L Brands were last seen up about 16% at $24.95 on Thursday, in a 52-week range of $21.47 to $38.14. The consensus price target is $30.52.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
