Victoria's Secret (VSCO, $69.07) beats Q2 earnings expectations; misses revenue forecast
Victoria’s Secret reported fiscal-second-quarter earnings that surpassed analysts’ expectations. They also marked a turnaround from the year-ago quarter’s loss. Revenue, however, misses analysts' forecasts.
For the quarter ended July 31, the lingerie retailer company’s earnings came in at $1.71 a share compared with a loss of -$2.26 a share in the year-ago quarter. Analysts polled by FactSet expected $1.59 a share.
Revenue of $1.61 billion fell short of analysts’ estimate of $1.69 billion. The figure was higher than the year-ago period’s $1.07 billion as most of Victoria's Secret stores were closed last year due to the pandemic.
“With tighter inventory management and more emotionally appealing product, we are less promotional, resulting in significant margin increases,” Chief Executive Martin Waters said in a statement.
For fiscal-third-quarter, Victoria’s Secret projects earnings per share in the range of 60 cents to 70 cents a share – compared to 93 cents a share expected by analysts polled by FactSet.
The company expects sales to increase in the mid- to high-single-digits percent from the year-earlier $1.35 billion. FactSet's survey was looking for $1.51 billion of revenue.
VSCO in -1.99% downward trend, sliding for three consecutive days on December 31, 2024
Moving lower for three straight days is viewed as a bearish sign. Keep an eye on this stock for future declines. Considering data from situations where VSCO declined for three days, in of 219 cases, the price declined further within the following month. The odds of a continued downward trend are .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for VSCO moved out of overbought territory on December 16, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 24 similar instances where the indicator moved out of overbought territory. In of the 24 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on December 18, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on VSCO as a result. In of 49 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for VSCO turned negative on December 17, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 24 similar instances when the indicator turned negative. In of the 24 cases the stock turned lower in the days that followed. This puts the odds of success at .
VSCO broke above its upper Bollinger Band on December 06, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where VSCO advanced for three days, in of 210 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 129 cases where VSCO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. VSCO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.447) is normal, around the industry mean (3.964). P/E Ratio (13.331) is within average values for comparable stocks, (110.742). VSCO's Projected Growth (PEG Ratio) (0.000) is very low in comparison to the industry average of (1.444). VSCO has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.028). P/S Ratio (0.237) is also within normal values, averaging (1.139).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. VSCO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 74, placing this stock worse than average.
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