Zale Corp First Quarter Earnings Sneak Peek

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Zale Corporation (NYSE:ZLC) will unveil its latest earnings on Tuesday, November 20, 2012. Zale is a specialty retailer of fine jewelry. It operates specialty retail jewelry stores and kiosks located mainly in shopping malls throughout the United States, Canada and Puerto Rico.

Zale Corporation Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of 68 cents per share, a narrower loss from the year-earlier quarter net loss of $1.17. During the past three months, the average estimate has moved up from a loss of 85 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at a loss of 68 cents during the last month. Analysts are projecting profit of 27 cents per share versus a loss of $1.02 last year.

Past Earnings Performance: Last quarter, the company beat estimates by 23 cents, coming in at net loss of 61 cents a share versus the estimate of a loss of 84 cents a share. It marked the fourth straight quarter of beating estimates.

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Stock Price Performance: Between August 21, 2012 and November 14, 2012, the stock price rose $3.21 (83.6%), from $3.84 to $7.05. The stock price saw one of its best stretches over the last year between August 23, 2012 and September 5, 2012, when shares rose for nine straight days, increasing 58% (+$2.13) over that span. It saw one of its worst periods between October 22, 2012 and October 26, 2012 when shares fell for five straight days, dropping 3.4% (-25 cents) over that span.

A Look Back: In the fourth quarter of the last fiscal year, the company’s loss narrowed to a loss of $19.7 million (62 cents a share) from a loss of $32.6 million ($1.02) a year earlier, beating analyst expectations. Revenue rose 7.9% to $407 million from $377.3 million.

Wall St. Revenue Expectations: On average, analysts predict $364.6 million in revenue this quarter, a rise of 3.9% from the year-ago quarter. Analysts are forecasting total revenue of $1.93 billion for the year, a rise of 3.2% from last year’s revenue of $1.87 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 7.3% in the first quarter of the last fiscal year, 6% in the second quarter of the last fiscal year and 8.1% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: With three analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts. Over the last three months, the stock’s average rating has increased from hold to moderate buy.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.11 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

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

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