Victoria's Secret & Co. (NYSE:VSCO) Posts Quarterly Earnings Results, Beats Estimates By $0.31 EPS

Key Points

• Victoria's Secret & Co. beat quarterly expectations, reporting EPS of $0.60 versus the $0.29 consensus estimate, while revenue came in at $1.56 billion, above the expected $1.52 billion.
• The company posted a net margin of 2.45% and a return on equity of 33.55%, and shares were trading down about 0.5% after the results.
• Analyst sentiment remains constructive overall, with an average Moderate Buy rating and a consensus price target of $61.80, though recent brokerage targets were mixed.

Victoria's Secret & Co. (NYSE:VSCO - Get Free Report) released its quarterly earnings data on Tuesday. The company reported $0.60 earnings per share for the quarter, beating the consensus estimate of $0.29 by $0.31, FiscalAI reports. Victoria's Secret & Co. had a net margin of 2.45% and a return on equity of 33.55%. The firm had revenue of $1.56 billion during the quarter, compared to analysts' expectations of $1.52 billion.

Victoria's Secret & Co. Trading Down 0.5%

Shares of VSCO opened at $54.74 on Tuesday. Victoria's Secret & Co. has a twelve month low of $17.53 and a twelve month high of $66.89. The company has a market cap of $4.35 billion, a P/E ratio of 29.43, a P/E/G ratio of 0.95 and a beta of 2.16. The company has a current ratio of 1.25, a quick ratio of 0.54 and a debt-to-equity ratio of 1.07. The company's fifty day simple moving average is $49.54 and its 200-day simple moving average is $51.89.

Insider Buying and Selling at Victoria's Secret & Co.

In other Victoria's Secret & Co. news, Director Anne Sheehan bought 4,842 shares of the company's stock in a transaction on Thursday, April 2nd. The shares were bought at an average cost of $45.86 per share, for a total transaction of $222,054.12. Following the acquisition, the director directly owned 34,261 shares in the company, valued at approximately $1,571,209.46. The trade was a 16.46% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Donna James bought 2,175 shares of the company's stock in a transaction on Thursday, April 2nd. The shares were acquired at an average price of $46.23 per share, for a total transaction of $100,550.25. Following the completion of the acquisition, the director owned 63,097 shares in the company, valued at $2,916,974.31. This represents a 3.57% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 0.52% of the company's stock.

Hedge Funds Weigh In On Victoria's Secret & Co.

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Dimensional Fund Advisors LP raised its position in Victoria's Secret & Co. by 10.3% during the 3rd quarter. Dimensional Fund Advisors LP now owns 2,549,501 shares of the company's stock worth $69,187,000 after buying an additional 238,516 shares during the last quarter. Marshall Wace LLP increased its holdings in shares of Victoria's Secret & Co. by 301.4% during the 4th quarter. Marshall Wace LLP now owns 1,792,727 shares of the company's stock valued at $97,112,000 after purchasing an additional 1,346,104 shares in the last quarter. Fuller & Thaler Asset Management Inc. purchased a new position in shares of Victoria's Secret & Co. during the 4th quarter valued at approximately $87,786,000. Bank of America Corp DE increased its holdings in shares of Victoria's Secret & Co. by 44.2% during the 2nd quarter. Bank of America Corp DE now owns 1,415,200 shares of the company's stock valued at $26,210,000 after purchasing an additional 434,012 shares in the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its holdings in shares of Victoria's Secret & Co. by 47.0% during the 4th quarter. Arrowstreet Capital Limited Partnership now owns 1,330,965 shares of the company's stock valued at $72,098,000 after purchasing an additional 425,805 shares in the last quarter. 90.29% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of brokerages have commented on VSCO. TD Cowen reduced their target price on shares of Victoria's Secret & Co. from $60.00 to $58.00 and set a "hold" rating for the company in a report on Friday, March 6th. Barclays upped their target price on shares of Victoria's Secret & Co. from $65.00 to $80.00 and gave the company an "overweight" rating in a report on Monday, March 2nd. UBS Group set a $58.00 target price on shares of Victoria's Secret & Co. in a report on Friday, March 6th. Weiss Ratings cut shares of Victoria's Secret & Co. from a "hold (c)" rating to a "hold (c-)" rating in a report on Monday, April 27th. Finally, Jefferies Financial Group reaffirmed a "buy" rating on shares of Victoria's Secret & Co. in a report on Thursday, March 5th. One equities research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $61.80.

About Victoria's Secret & Co.

Victoria's Secret & Co is a leading designer, manufacturer and marketer of intimate apparel, beauty products and accessories for women. The company operates a portfolio of brands that includes Victoria's Secret, renowned for its lingerie, bras and sleepwear; PINK, a line targeting younger consumers with activewear and lifestyle products; and Victoria's Secret Beauty, offering fragrances, cosmetics and personal care items. Products are sold through retail stores as well as direct-to-consumer channels, including e-commerce platforms and mobile applications.

The origins of Victoria's Secret date back to 1977, when founders Roy and Gaye Raymond opened the first store in San Francisco.

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