L Brands Inc (NYSE:LB) had been on a downward spiral for the better part of this year and L Brands stock had mirrored the company’s fortunes as well. The retail giant, which owns such iconic brands as Victoria’s Secret and Bath & Body works had been struggling for some time, but the Q1 2019 results surprised Wall Street as it ended up recording impressive numbers.
L Brands Stock | Top Analysts Estimate
The company managed to beat the analysts’ estimates for both profit and revenues, to send and L Brands stock soaring in Wednesday’s trading. L Brands recorded net income of $40.3 million, a decline from the net income of $47.5 million in the same quarter last year.
The earnings per share for the quarter stood at 14 cents a share and although it was lower than the 17 cents per share figure from a year ago, it beat analysts’ estimates of a break-even number.
Total revenues for the quarter stood at $2.628 billion, which beat analysts’ estimates of $2.56 billion and up marginally from revenues reported during the same quarter last year, which stood at $2.625 billion. The impressive performance was primarily due to the solid numbers posted by Bath & Body Works but at the same time, Victoria’s Secret continued to be a major disappointment for L Brands.
L Brands stock is trading higher by 12.50% and now selling at $24.16. Yesterday, the stock made a new 52-week low of $21.47.
Optimism For L Brand Stock Investors
However, it should come as a genuine reason for optimism for investors that L Brands has also raised its projections for the company’s performance this year.
L Brands lifted its projections of the EPS for full-year to $2.30 – $2.60 per share, compared to its previous guidance of $2.20 -$2.60 per share. Analysts projects the company to earn $2.39 a share for the FY2019.
What do you think of L Brands stock after solid results?
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