The Wet Seal Inc. Fourth Quarter Earnings Sneak Peek

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The Wet Seal, Inc. (NASDAQ:WTSLA) will unveil its latest earnings on Thursday, March 22, 2012. Wet Seal is a national retailer operating stores selling fashionable and contemporary apparel and accessory items designed for female customers aged 13 to 35 years old.

The Wet Seal, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 3 cents per share, a decline of 57.1% from the company’s actual earnings in the year-ago quarter. During the past three months, the average estimate has moved down from 4 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 3 cents during the last month. Analysts are projecting profit to rise by 11.8% compared to last year’s 19 cents.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by one cent, reporting net income of 5 cents per share against a mean estimate of profit of 4 cents. In the second quarter, the company exceeded forecasts by one cent with net income of 3 cents versus a mean estimate of profit of 2 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 0% in revenue from the year-earlier quarter to $165.5 million.

Analyst Ratings: Optimism surrounds Wet Seal, as four analysts rate it as a buy, none rate it as a sell, and four rate it as a hold.

A Look Back: In the third quarter, profit rose 46.3% to $3.7 million (4 cents a share) from $2.6 million (3 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 3.9% to $152.1 million from $146.4 million.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 36.1% in the second quarter and more than twofold in the first quarter.

Revenue has risen the past four quarters. Revenue rose 13.1% in the second quarter from the year earlier, climbed 13.3% in the first quarter from the year-ago quarter and 9.6% in the fourth quarter of the last fiscal year.

Stock Price Performance: Between February 16, 2012 and March 16, 2012, the stock price dropped 26 cents (-7.2%), from $3.62 to $3.36. The stock price saw one of its best stretches over the last year between May 2, 2011 and May 10, 2011, when shares rose for seven straight days, increasing 15% (+64 cents) over that span. It saw one of its worst periods between November 2, 2011 and November 9, 2011 when shares fell for six straight days, dropping 28.5% (-$1.23) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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