Luckritz

Unit 6 Paper Kyle Luckritz Principles of Finance Mrs. Bierce

Luckritz Mean and Median Based on the information provided by the Thomson ONE website, the current Mean for fiscal year ending January 2013 is 2.958 and the current Median is 2.950. For the next 2 years forecast reports show each one increase till at least 2015. For the next fiscal year ending January 2014 the mean is projected to be 3.424 and the median to be 3.450 Expected long-term growth rate in earnings The five year historical growth rate is -30.183 but for the current fiscal year to fiscal year of January 2013 the growth rate is projected to be 28.609. For fiscal year ending January 2014 growth rate shows 48.870 and for fiscal year ending January 2015 the growth rate shows as 73.000. These are all good projected growth rates. If these are correct Abercrombie could see some good returns. Analysts forecasts When reviewing the Thomson One report, I did see some changes to the

forecasted earnings but none were very significant. For fiscal year ending January 2014, the current forecasted PE is 13.205 but 3 months ago it was 14.827. This is not a significant change but has dropped over the 3 month time frame. Another interesting figure to look at was the EPS for the same year. Current forecasted EPS shows 3.473 were as 3 months ago it was 3.093 Reported earnings vs. forecasted earnings Overall forecasters have been fairly close to the reported earnings. For the forecasted PE, analysts have been a little higher than the reported earnings. For earnings per share analysts have been a little low compared to the reported earnings. Although

Luckritz they have been a little off, the forecasts have been fairly close and have closely represented the actual earnings. Stock vs. S&P 500 If you were to look at the chart that compares ANF to the S&P 500, you will see

that Abercrombie does not follow closely to the S&P 500. The S&P 500 is a fairly steady line that really doesnt have too many sudden decreases or increases. The Abercrombie & Fitch stock price has huge fluctuations throughout the last 6 months. Its gone as low as 80% to as high as 120%. The stock price is almost never constant and can decrease or increase on any given day without notice.

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Works Cited Thomson. (2010). Thomson one business school edition. Retrieved from http://tobsefin.swlearning.com