Ascena Retail Group Inc
) is scheduled to report its financial results for the fourth
quarter and fiscal 2012 before the opening bell on September 19,
2012. The current Zacks Consensus Estimate for the quarter is 29
cents per share and revenue is expected to be $780 million.
For fiscal 2012, the Zacks Consensus Estimate for revenue and
earnings stands at $3,193 million and $1.35 per share,
Third-quarter 2012 - A synopsis
On May 31, 2012 the company reported revenue of $783.3 million,
roughly $61 million more than the year-ago period. The
year-over-year growth in top line was primarily driven by a 5%
increase in comparable store sales along with strong e-commerce
sales. Moreover, adjusted earnings for the quarter also improved 2
cents to 34 cents per share compared with 32 cents earned in the
However, the company's top and bottom line missed the Zacks
Consensus Estimate of $786 million and 36 cents per share,
Fiscal 2012 guidance
Following the third-quarter financial results, Ascena reaffirmed
its fiscal 2012 earnings guidance range of $1.37 to $1.40 per
share. Moreover, the company is anticipating a mid-single-digit
growth in comparable store sales.
The analysts, following the stock, expect Ascena to post
fourth-quarter earnings of 29 cents a share, higher than 24 cents
delivered in the prior-year quarter. Currently, the Zacks Consensus
Estimate ranges between 27 cents and 34 cents a share.
For fiscal 2012, the Zacks Consensus Estimate stands at $1.35
per share, higher than the year-ago fiscal earnings of $1.16. The
current estimate ranges between $1.33 and $1.40 per share.
Earnings Estimate Revisions
Of the 9 estimates, 4 moved downward over the last 30 days for
the fourth quarter and fiscal 2012, respectively, while no upward
movement was witnessed.
However, over the last 7 days, no estimate revisions took
The magnitude of estimate revisions for Ascena depicts a
pessimistic outlook for the fourth quarter and fiscal 2012. Over
the last 30 days, estimates for the upcoming quarter and fiscal
2012 have been lowered by 2 cents and 3 cents to 29 cents and $1.35
per share, respectively.
Lowering of estimates depicts analysts' concerns over the
company's Maurices brands performance due to droughts and low crop
yields expectation, as the brand has significant exposure to
With respect to earnings surprises, Ascena has missed as well as
topped the Zacks Consensus Estimate over the trailing four quarters
in the range of negative 5.6% to positive 20.6%. The average
surprise over the last four quarters remained at positive 3.7%.
We believe that the acquisition of Charming Shoppes will be
accretive to the company's top and bottom lines. Moreover, the
combined sales of both the companies are expected to be around $4.4
Ascena Retail Group, Inc. operates as a specialty retailer of
apparel for women and teen girls in the United States, Puerto Rico,
and Canada. The company operates its stores under the Dressbarn,
Maurices, and Justice brand names. Ascena operated approximately
2,600 stores in 48 states of United States, Puerto Rico and
Ascena, which competes with
), has a Zacks #5 Rank, which implies a short-term Strong Sell
rating. This short-term rating is supported by our long-term
'Underperform' recommendation on the stock.
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