Bath & Body Works, Inc. (NYSE: BBWI) Q3 Earnings Preview

• Analysts estimate an EPS of $0.47 with projected revenue of $1.58 billion for the third quarter.
• Despite a projected 4.2% decline in EPS year-over-year, revenue is expected to rise by 1.1%.
• Key financial ratios such as the P/E ratio of 7.29 and earnings yield of 13.73% highlight BBWI's market valuation and financial stability.

Bath & Body Works, Inc. (NYSE: BBWI) is a well-known retailer specializing in personal care and home fragrance products. The company is set to release its third-quarter earnings on Monday, November 25, 2024. Analysts on Wall Street estimate the earnings per share (EPS) to be $0.47, with projected revenue of approximately $1.58 billion. This release is highly anticipated by investors and stakeholders.

The upcoming earnings report has led to recent forecast changes from some of Wall Street's most accurate analysts, as highlighted by Benzinga. Analysts project an EPS of $0.47, marking a 4.2% decline from the same period last year. Despite this, revenues are expected to rise slightly by 1.1%, reaching $1.58 billion. The stability in the consensus EPS estimate over the past 30 days suggests that analysts have not significantly altered their forecasts.

BBWI's financial metrics provide insight into its market valuation. The company has a price-to-earnings (P/E) ratio of approximately 7.29, indicating how the market values its earnings. The price-to-sales ratio is about 0.91, suggesting that investors are paying less than a dollar for each dollar of sales. These ratios help investors understand the company's valuation relative to its earnings and sales.

The enterprise value to sales ratio stands at around 1.57, reflecting BBWI's total valuation relative to its sales. Additionally, the enterprise value to operating cash flow ratio is approximately 12.78, providing insight into the company's cash flow generation relative to its valuation. These metrics are crucial for investors assessing the company's financial health and performance.

BBWI's financial stability is further highlighted by its earnings yield of about 13.73%, offering a relatively high return on its earnings. However, the debt-to-equity ratio is approximately -2.55, indicating a higher level of debt compared to equity. The current ratio is around 1.11, suggesting that BBWI has a slightly higher level of current assets compared to its current liabilities, which is important for meeting short-term obligations.