L Brands (LB) Issues Earnings Results

L Brands (NYSE:LB) posted its earnings results on Wednesday. The specialty retailer reported $0.17 EPS for the quarter, beating the Zacks’ consensus estimate of $0.15 by $0.02, Bloomberg Earnings reports. L Brands had a negative return on equity of 101.69% and a net margin of 7.78%. The company had revenue of $2.63 billion for the quarter, compared to the consensus estimate of $2.59 billion. During the same quarter in the previous year, the business earned $0.33 earnings per share. The company’s revenue for the quarter was up 7.8% on a year-over-year basis. L Brands updated its Q2 guidance to $0.30-0.35 EPS and its FY19 guidance to $2.70-3.00 EPS.

Shares of L Brands opened at $34.05 on Thursday, according to Marketbeat.com. The stock has a market cap of $9.59 billion, a price-to-earnings ratio of 10.64, a price-to-earnings-growth ratio of 0.99 and a beta of 0.77. The company has a quick ratio of 1.01, a current ratio of 1.62 and a debt-to-equity ratio of -7.60. L Brands has a 1 year low of $30.70 and a 1 year high of $63.10.

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 15th. Shareholders of record on Friday, June 1st will be issued a dividend of $0.60 per share. This represents a $2.40 dividend on an annualized basis and a yield of 7.05%. The ex-dividend date is Thursday, May 31st. L Brands’s dividend payout ratio (DPR) is 75.00%.

A number of equities research analysts have recently weighed in on the company. Deutsche Bank dropped their price objective on L Brands from $67.00 to $65.00 and set a “buy” rating for the company in a research note on Monday, February 26th. Bank of America set a $38.00 price objective on L Brands and gave the company a “sell” rating in a research note on Thursday, March 1st. KeyCorp dropped their price objective on L Brands from $35.00 to $32.00 and set an “underweight” rating for the company in a research note on Monday, March 26th. Zacks Investment Research cut L Brands from a “hold” rating to a “sell” rating in a research note on Monday, March 26th. Finally, Citigroup raised L Brands from a “neutral” rating to a “buy” rating and set a $45.00 price objective for the company in a research note on Monday, May 14th. They noted that the move was a valuation call. Eight equities research analysts have rated the stock with a sell rating, seventeen have assigned a hold rating and eleven have given a buy rating to the company’s stock. The company presently has an average rating of “Hold” and a consensus price target of $44.66.

In other news, CFO Stuart B. Burgdoerfer sold 17,000 shares of the business’s stock in a transaction dated Wednesday, March 21st. The stock was sold at an average price of $39.56, for a total value of $672,520.00. Following the completion of the sale, the chief financial officer now directly owns 52,640 shares of the company’s stock, valued at approximately $2,082,438.40. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Stuart B. Burgdoerfer sold 33,000 shares of the business’s stock in a transaction dated Tuesday, March 13th. The shares were sold at an average price of $42.53, for a total value of $1,403,490.00. Following the completion of the sale, the chief financial officer now directly owns 69,640 shares of the company’s stock, valued at $2,961,789.20. The disclosure for this sale can be found here. 17.32% of the stock is owned by insiders.

L Brands announced that its Board of Directors has initiated a share buyback program on Thursday, March 8th that allows the company to buyback $226.90 million in shares. This buyback authorization allows the specialty retailer to purchase shares of its stock through open market purchases. Shares buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

About L Brands

L Brands, Inc operates as a specialty retailer of women's intimate and other apparel, beauty and personal care products, home fragrance products, and accessories. The company operates in three segments: Victoria's Secret, Bath & Body Works, and Victoria's Secret and Bath & Body Works International.

Earnings History for L Brands (NYSE:LB)

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