New book by Larry Connors Click here Improve your trading - See how
Company Description
Elizabeth Arden sells beauty products in over 90 countries. The company's products include Elizabeth Arden skincare, color, and fragrances. RDEN's anti-aging skincare treatment is hot, winning awards in numerous women's magazines for 'best' skincare product.
The company also produces the celebrity fragrance brands of Elizabeth Taylor, Mariah Carey, Britney Spears, Hilary Duff, and Usher and designer brands of Juicy Couture, Bob Mackie, Liz Claiborne, Halston, and Giorgio of Beverly Hills.
Elizabeth Arden Surprises on the Fourth Quarter by 4.76%
On Aug 14, Elizabeth Arden announced fourth quarter results and beat Wall Street estimates by a penny. Net income was $6.3 million, or 22 cents per share, down from $9.9 million, or 34 cents per share in the year ago quarter. Analysts expected 21 cents.
Sales for the fourth quarter fell 2.6% to $236.3 million from $242.7 million in 2007. For the fiscal 2008, sales rose 1.2% to $1.141 million compared to a sales decrease of 0.4% in fiscal 2007.
International business grew 9.2% but North America struggled as sales at department stores fell with the difficult consumer environment. The North American fragrance business declined 1.5%.
In May 2008, the company entered into a long-term global licensing agreement for Liz Claiborne fragrances. Elizabeth Arden incurred $19.6 million in expenses in the fourth quarter related to the transaction.
Outlook for 2009
RDEN expects the Liz Claiborne brand to provide a boost to sales and earnings growth, especially in North America. The company expects net sales to increase by 12.5% to 14% for fiscal 2009. The guidance assumes modest growth in the U.S. and European businesses before sales contributions from the Liz Claiborne brands.
Earnings per share are expected in the range of $1.65 to $1.85.
For the first quarter, the company guided to a sales increase in the range of 5% to 7% and earnings per share between 4 and 8 cents.
Consensus Estimates Rising
Given the company's guidance, covering analysts have been raising estimates for the first-quarter 2009 and the fiscal year 2009. First quarter estimates are up 2 cents to 6 cents, which is in the middle of the company's targeted range.
Full year estimates rose 13 cents to $1.77 per share.
Value Fundamentals
Elizabeth Arden is a Zacks #1 Rank (Strong Buy) stock. The company has a forward P/E of 8.95. Its price-to-book is 1.40. RDEN has a solid five year average return on equity (ROE) of 13.53%.
Zacks #1 Ranked Stocks have generated an average annual return of 31.8% since 1988. Every day we highlight four new Zacks Rank Buy stocks on the Zacks.com home page. Discover the Four Stocks we are Recommending Now!
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
15260 Ventura Blvd., Ste. 2200
Sherman Oaks, CA 91403
© Copyright 2009 The Connors Group, Inc.
