Barclays Maintains an 'Equalweight' on Limited Brands (LTD); 3Q 2011 Earnings Review
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Price: $65.09 -0.57%
Rating Summary:
6 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
6 Buy, 13 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Barclays maintains an 'Equalweight' on Limited Brands (NYSE: LTD) price target of $46.00.
Barclays analyst says, "LTD reported 3Q 2011 EPS of $0.25, $0.01 better than our estimate and consensus of $0.24. The penny beat was due to lower-than-expected SG&A expense. Management provided guidance for 4Q/11 of $1.28 to $1.43 based on a low single digit comp. For FY 2011, LTD raised guidance to $2.38-$2.53 from $2.35-$2.50. We believe LTD will comp high single digits in Q4 and that the company will use excess cash to repurchase shares, thus we are raising our 4Q 2011 estimate to $1.53 from $1.39, 2011 to $2.61 from $2.50, and 2012 to $2.95 from $2.80."
"We think LTD is well positioned for the holidays and we believe a large repurchase and a special dividend are likely before year end. We project LTD will end the year with $1.5 billion in cash, and the company has indicated the required balance is $600 million, thus $900 million will likely be returned to shareholders in the near term."
For an analyst ratings summary and ratings history on Limited Brands click here. For more ratings news on Limited Brands click here.
Shares of Limited Brands closed at $41.60 yesterday.
Barclays analyst says, "LTD reported 3Q 2011 EPS of $0.25, $0.01 better than our estimate and consensus of $0.24. The penny beat was due to lower-than-expected SG&A expense. Management provided guidance for 4Q/11 of $1.28 to $1.43 based on a low single digit comp. For FY 2011, LTD raised guidance to $2.38-$2.53 from $2.35-$2.50. We believe LTD will comp high single digits in Q4 and that the company will use excess cash to repurchase shares, thus we are raising our 4Q 2011 estimate to $1.53 from $1.39, 2011 to $2.61 from $2.50, and 2012 to $2.95 from $2.80."
"We think LTD is well positioned for the holidays and we believe a large repurchase and a special dividend are likely before year end. We project LTD will end the year with $1.5 billion in cash, and the company has indicated the required balance is $600 million, thus $900 million will likely be returned to shareholders in the near term."
For an analyst ratings summary and ratings history on Limited Brands click here. For more ratings news on Limited Brands click here.
Shares of Limited Brands closed at $41.60 yesterday.
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