Steven Madden Ltd. Second Quarter Earnings Sneak Peek

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Steven Madden, Ltd. (NASDAQ:SHOO) will unveil its latest earnings on Thursday, July 26, 2012. Steven Madden designs, sources, markets and retails women’s, men’s and children’s shoes for sale through its wholesale and retail channels.

Steven Madden, Ltd. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 63 cents per share, a rise of 14.5% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 66 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 64 cents during the last month. Analysts are projecting profit to rise by 18.7% versus last year to $2.67.

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 50 cents per share versus a mean estimate of profit of 50 cents per share. In the fourth quarter of the last fiscal year, the company beat estimates by one cent.

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Wall St. Revenue Expectations: On average, analysts predict $281.7 million in revenue this quarter, a rise of 34.7% from the year-ago quarter. Analysts are forecasting total revenue of $1.22 billion for the year, a rise of 26% from last year’s revenue of $968.5 million.

A Look Back: In the first quarter, profit rose 22.5% to $21.9 million (50 cents a share) from $17.9 million (42 cents a share) the year earlier, meeting analyst expectations. Revenue rose 56.2% to $266 million from $170.3 million.

Stock Price Performance: Between April 25, 2012 and July 20, 2012, the stock price fell $8.81 (-20.5%), from $42.99 to $34.18. The stock price saw one of its best stretches over the last year between July 2, 2012 and July 10, 2012, when shares rose for six straight days, increasing 8% (+$2.54) over that span. It saw one of its worst periods between June 20, 2012 and July 2, 2012 when shares fell for nine straight days, dropping 14.2% (-$5.26) over that span.

Key Stats:

The company enters this earnings announcement with substantial revenue momentum. The company has averaged year-over-year revenue growth of 58.4% over the last four quarters.

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 39.3% in the third quarter of the last fiscal year and 34.9% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Analyst Ratings: With four analysts rating the stock a buy, none rating it a sell and three rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.36 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 regressed in this liquidity measure from 2.57 in the fourth quarter of the last fiscal year to the last quarter driven in part by a decrease in current assets. Current assets decreased 7.3% to $321.1 million while liabilities rose by 0.7% to $136 million.

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

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