The Wet Seal Earnings: Here’s Why Shares are Down Now

The Wet Seal, Inc (NASDAQ:WTSL) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.13%.

The Wet Seal, Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.01 in the quarter versus EPS of $-0.07 in the year-earlier quarter.

Revenue: Rose 1.43% to $137.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Wet Seal, Inc reported adjusted EPS income of $0.01 per share. By that measure, the company missed the mean analyst estimate of $0.01. It missed the average revenue estimate of $137.88 million.

Quoting Management: John D. Goodman, Chief Executive Officer, stated, “During the second quarter we achieved strong year-over-year improvement across all of our key financial metrics. We delivered comparable store sales growth of 3.7%, expanded our merchandise margin, reduced expenses and attained profitability. Our performance reflects the benefits of our fast fashion operating model, ongoing progress against our turnaround strategies and strong inventory management.”

Key Stats (on next page)…

Revenue decreased 2.31% from $140.45 million in the previous quarter. EPS increased 0% from $0.01 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a loss of $0 and has not changed. For the current year, the average estimate has moved up from a profit of $0.07 to a profit of $0.08 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)