Vitamin Shoppe Third Quarter Earnings Sneak Peek

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Vitamin Shoppe, Inc. (NYSE:VSI) will unveil its latest earnings on Tuesday, November 6, 2012. Vitamin Shoppe is a retailer and direct marketer of vitamins, minerals, herbs, supplements, sports nutrition and other health and wellness products.

Vitamin Shoppe, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 45 cents per share, a rise of 12.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 44 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 45 cents during the last month. For the year, analysts are projecting net income of $2.02 per share, a rise of 21.7% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 4 cents, coming in at profit of 55 cents a share versus the estimate of net income of 51 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the second quarter, profit rose 38.8% to $16.6 million (55 cents a share) from $12 million (40 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 13.4% to $245 million from $215.9 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 12.3% in revenue from the year-earlier quarter to $234.7 million.

Stock Price Performance: Between August 7, 2012 and October 31, 2012, the stock price fell $3.28 (-5.4%), from $60.52 to $57.24. The stock price saw one of its best stretches over the last year between July 31, 2012 and August 7, 2012, when shares rose for six straight days, increasing 10.2% (+$5.60) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 9.8% (-$5.33) over that span.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 14.6% 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 57.9% in the fourth quarter of the last fiscal year and 57.6% in the first quarter before increasing again in the second quarter.

Analyst Ratings: With seven analysts rating the stock as a buy, none rating it as a sell and seven rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.78 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.

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

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