The Wet Seal, Inc. Second Quarter Earnings Sneak Peek

The Wet Seal, Inc. (NASDAQ:WTSLA) will unveil its latest earnings on Thursday, August 18, 2011. Wet Seal, Inc. 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 2 cents per share, no change from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 3 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 2 cents during the last month. For the year, analysts are projecting net income of 22 cents per share, a rise of 29.4% from last year.

Past Earnings Performance: The company fell in line with estimates last quarter after topping forecasts the quarter before. After coming in above the mean estimate by 3 cents in the fourth quarter of the last fiscal year, the company fell in line with expecations by reporting profit of 8 cents per share last quarter.

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Wall St. Revenue Expectations: On average, analysts predict $146.9 million in revenue this quarter, a rise of 11.7% from the year ago quarter. Analysts are forecasting total revenue of $647.1 million for the year, a rise of 11.3% from last year’s revenue of $581.2 million.

Analyst Ratings: Analysts are bullish on this stock with six analysts rating it as a buy, none rating it as a sell and one rating it as a hold.

Key Stats:

The increase in profit in the first quarter breaks a streak of three consecutive quarters of year-over-year profit decreases. In the first quarter, net income rose more than twofold from the year earlier, while the figure dropped 93.5% in the fourth quarter of the last fiscal year, 43.3% in the third quarter of the last fiscal year and 48% in the second quarter of the last fiscal year.

Revenue has now gone up for three straight quarters. In first quarter, revenue rose 13.3% to $156 million while the figure rose 9.6% in the fourth quarter of the last fiscal year from the year earlier and 3.4% in the third quarter of the last fiscal year.

Competitors to Watch: Body Central Acquisition Corp. (NASDAQ:BODY), bebe stores, inc. (NASDAQ:BEBE), dELiA*s, Inc. (NASDAQ:DLIA), Limited Brands, Inc. (NYSE:LTD), The Cato Corporation (NYSE:CATO), Aeropostale, Inc. (NYSE:ARO), The Buckle, Inc. (NYSE:BKE), Abercrombie & Fitch Co. (NYSE:ANF), Pacific Sunwear of California, Inc. (NASDAQ:PSUN), and Zumiez Inc. (NASDAQ:ZUMZ).

Stock Price Performance: During July 15, 2011 to August 12, 2011, the stock price had dropped 51 cents (-10.2%) from $5 to $4.49. The stock price saw one of its best stretches over the last year between February 2, 2011 and February 11, 2011 when shares rose for eight-straight days, rising 15.7% (+54 cents) over that span. It saw one of its worst periods between November 8, 2010 and November 16, 2010 when shares fell for seven-straight days, falling 10.9% (-38 cents) over that span. Shares are up 79 cents (+21.4%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

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