Saks Inc Second Quarter Earnings Sneak Peek

Saks Inc (NYSE:SKS) will unveil its latest earnings on Tuesday, August 14, 2012. Saks is a fashion retail organization offering an assortment of luxury fashion apparel, shoes, accessories, jewelry, cosmetics and gifts.

Saks Inc Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of 9 cents per share, a wider loss from the year-earlier quarter net loss of 5 cents. During the past three months, the average estimate has moved down from a loss of 5 cents. Between one and three months ago, the average estimate moved down. It also has dropped from a loss of 8 cents during the last month. Analysts are projecting profit to rise by 0% compared to last year’s 44 cents.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the first quarter, the company reported net income of 18 cents per share versus a mean estimate of profit of 18 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by 3 cents.

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A Look Back: In the first quarter, profit rose 13.2% to $32.1 million (18 cents a share) from $28.4 million (16 cents a share) the year earlier, meeting analyst expectations. Revenue rose 3.8% to $753.6 million from $726 million.

Stock Price Performance: Between May 14, 2012 and August 8, 2012, the stock price rose 80 cents (8%), from $10.05 to $10.85. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 18.1% (-$1.88) over that span. The stock price saw one of its best stretches over the last year between February 15, 2012 and February 24, 2012, when shares rose for seven straight days, increasing 11.8% (+$1.25) over that span.

Wall St. Revenue Expectations: On average, analysts predict $704 million in revenue this quarter, a rise of 5% from the year-ago quarter. Analysts are forecasting total revenue of $3.19 billion for the year, a rise of 6% from last year’s revenue of $3.01 billion.

Analyst Ratings: There are mostly holds on the stock with six of 10 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.76 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company improved this liquidity measure from 2.74 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 7% to $1.16 billion while liabilities rose by 6.1% to $421.1 million.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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