Maidenform Brands Inc. (MFB) saw sales jump in the third quarter as shapewear sales remained hot. The company has surprised on estimates the last 4 quarters by an average of 35.60%.

Company Description

Maidenform Brands sells intimate apparel at department stores and other retail outlets through a collection of recognizable brands including Maidenform, Lilyette, Control It!, and Sweet Nothings. The 86-year old company also produces the Donna Karan and DKNY licensed brands.

At the end of the third quarter, it had 76 Maidenform Brand retail outlet stores.

Sales Jumped 14.3% in the Third Quarter

On Nov 10, Maidenform reported third quarter results which surprised on the Zacks Consensus by 7 cents, or 20%. Earnings per share were 42 cents compared to 36 cents in the year ago period. The Zacks Consensus called for 35 cents.

Net sales rose 14.3% to $128.7 million as its core bra and shapewear businesses boosted the quarter. Shapewear sales soared 14.5%.

Maidenform also had success in new programs with off-price retailers and sales to specialty retailers even though retail sales fell 5.1% in the quarter.

2009 Guidance Raised

Maidenform is bullish about the rest of 2009. It expects sales to rise 3% to 6% for the fourth quarter compared to the year ago period. Retail is still expected to be soft, with sales down in the upper single digits.

Earnings per share for the fourth quarter are expected to be in the range of 17 cents to 21 cents compared to 10 cents in 2008. Maidenform is expected to report fourth quarter results on Mar 10, 2010.

The company expects 2009 earnings to be in the range of $1.16 to $1.20 up from its prior guidance of $1.10 to $1.16 per share.

The 2009 Zacks Consensus Estimate is right in the middle of the guidance range, at $1.18 per share, up from $1.12 per share 60 days ago.

Analysts are optimistic about 2010 as they expect to see 12.68% earnings growth.

Value Fundamentals

Maidenform Brands is a Zacks #1 Rank (strong buy) stock. The company has a forward P/E of 14.2 and a price-to-book ratio of 2.52. Maidenform has an outstanding 5-year average return on equity (ROE) of 33.31%.

Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service.

Zacks Investment Research

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