Limited Brands (LTD) Shares Higher After Q3 Beat; $3 Special Dividend; Raised FY10 EPS Outlook

Limited Brands Inc. (NYSE: LTD) shares are up more than 5 percent in extended trade on Wednesday after the company raised its full-year profit outlook and announced a special $3 dividend, on top of slightly better-than-expected Q3 results. The company reported third-quarter earnings of 18 cents per share, a penny better than the analyst estimate of 17 cents per share. Revenue for the company came in at $1.983 billion, compared to the market consensus of $1.97 billion. "The significant increase in our year-to-date earnings and the continued disciplined management of inventory, capital spending and our capital structure have resulted in a very strong cash and liquidity position. We are confident in our ability to deliver substantial growth in our business and to generate significant free cash flow," Leslie H. Wexner, chairman and chief executive officer, stated. Limited Brands also announced a special dividend of $3 per share. The special dividend will be paid on Dec. 21, 2010, to shareholders of record at the close of business on Dec. 7, 2010. The ex-dividend date is Dec. 3, 2010. The yield on the special dividend is 9.4 percent based on today's closing price. Looking forward, the company sees fourth-quarter earnings of $1.02-$1.07 per share, below the consensus of $1.17 per share. The company also raised its full year earnings guidance from $1.68-$1.83 to $1.82-$1.97, compared to the consensus of $1.92. Shares of Limited Brands are up 5.11 percent to $33.50 in aftermarket movement on Wednesday.... Read more

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