L Brands, Inc.
), the specialty retailer of women's intimate and other apparel,
beauty and personal care products, is set to report third-quarter
fiscal 2013 results on Nov 20, 2013. Last quarter, it posted a
positive surprise of 1.7%. Let us see how things are shaping up
for this announcement.
Growth Factors in the Quarter
L Brands benefited from a rise in discretionary spending by
customers due to the recovering economy. Moreover, the company's
sustained focus on cost containment, inventory management,
merchandise, and speed-to-market initiatives has kept it afloat
in a sluggish consumer environment. The company's presence into
international markets is likely to drive long-term growth as
these stores continue to perform better than those in the U.S.
Our proven model does not conclusively project L Brands as likely
to beat earnings this quarter. That is because a stock needs to
have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
ESP for L Brands is 0.00%. This is because both the Most
Accurate Estimate and the Zacks Consensus Estimate stand at 28
Zacks #3 Rank (Hold)
: L Brands' Zacks Rank #3 (Hold) lowers the predictive power of
ESP because this Zacks Rank when combined with a 0.00% ESP makes
surprise prediction difficult. We caution against stocks with
Zacks Rank #4 and 5 (Sell-rated stocks) going into an earnings
announcement, especially when the company is witnessing negative
estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows these to have the right combination of elements to
post an earnings beat:
BEST BUY (BBY): Free Stock Analysis Report
FIVE BELOW INC (FIVE): Free Stock Analysis
HANESBRANDS INC (HBI): Free Stock Analysis
L BRANDS INC (LTD): Free Stock Analysis
To read this article on Zacks.com click here.
Best Buy Co., Inc.
) with Earnings ESP of 9.1% and Zacks Rank #1 (Strong Buy)
) with Earnings ESP of 1.11% and Zacks Rank #1 (Strong
Five Below, Inc.
) with Earnings ESP of 25.00% and Zacks Rank #2 (Buy)