NEW YORK (TheStreet) -- L Brands (LB) shares are up 1.06% to $89.64 in early market trading on Thursday, recovering from a brief downturn in after-hours trading Wednesday, after the retailer reported its first quarter earnings results yesterday.
The Columbus, OH-based Victoria's Secret and Bath and Body Works parent company reported first quarter net income of $250.5 million, or 61 cents per share, topping analysts' 60 cents per share estimates by one cent.
Revenue for the period increased 5% to $2.51 billion, in line with analysts' estimates for the quarter.
Shares dipped yesterday on the company's weak current quarter earnings guidance of between 60 cents and 65 cents per share, four cents short of the consensus 69 cent EPS expectations. However, the company also raised its full year earnings guidance to between $3.50 and $3.70 per share from its previous view of between $3.45 and $3.65 per share.
TheStreet Ratings team rates L BRANDS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate L BRANDS INC (LB) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins, growth in earnings per share, compelling growth in net income and revenue growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."