Phillips-Van Heusen Corp. (PVH) is seeing bullish estimate revisions as its share price soars past the market. The current full-year earnings forecast of $2.26 per share was upped from last month’s $2.19. During the past 3 months, PVH’s shares more than tripled the S&P 500.
Company Description
Phillips-Van Heusen Corp is a global designer and marketer of branded dress shirts, sportswear footwear and other similar products, offering several well-known brands. Calvin Klein, Izod, Bass and DKNY are just a few of the company’s brands.
The company grants licensing rights to its brands and holds key licenses to brands in the dress shirts, neckwear, and sportswear segments.
Bullish Forecasts
Phillips-Van Heusen is seeing bullish estimate revisions as its share price soars past the market. The current full-year earnings forecast of $2.26 per share was upped from last month’s $2.19.
For 2010, analysts’ earnings forecasts of $2.50 per share were increased from $2.43 over the past month.
Analysts are projecting earnings of 44 cents per share for PVH’s second quarter, an upward revision from last week’s 43 cents and the month-prior 42 cents.
During the past 3 months, PVH’s shares more than tripled the S&P 500.
The company is scheduled to report results for the second quarter on August 19.
A Solid First Quarter
In mid-May, Phillips-Van Heusen posted first-quarter earnings of 53 cents per share, beating the consensus estimate by 10%.
Management stated that despite a difficult economy and pressure in the consumer, the company was able to exceed its earnings guidance, adding that business remains challenging, but PVH’s diversified business strategy and the strength of its brands allowed the company to outperform our projections.
Emanuel Chirico, Chairman and Chief Executive Officer said, “Our financial position is strong and we ended the first quarter with $282 million of cash, a $98 million increase over the prior year. We have no outstanding borrowings under our revolving credit facility and no maturities of long-term debt until 2011. We remain focused on maintaining a strong balance sheet through our vigilant management of working capital and cautious capital spending, while investing appropriately in our brands for long-term growth.”
Strong Fundamentals
Phillips-Van Heusen’s return on equity (ROE) of 13% is ahead of the industry’s average of 10%. The company’s net profit margin of 3% tops the industry average of 0.11%. The Growth and Income pick offers an industry-leading dividend yield of 0.51%.
