The Wet Seal Inc. Third Quarter Earnings Cheat Sheet Sneak Peek

The Wet Seal, Inc. (NASDAQ:WTSLA) will unveil its latest earnings on Thursday, November 17, 2011. 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 net income of 5 cents per share, a rise of 66.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 4 cents. Between one and three months ago, the average estimate moved up. It has dropped from 6 cents during the last month. For the year, analysts are projecting profit of 21 cents per share, a rise of 23.5% from last year.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at net income of 3 cents per share against a mean estimate of profit of 2 cents. The company fell in line with estimates in the first quarter.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 7.7% in revenue from the year-earlier quarter to $157.7 million.

Analyst Ratings: Analysts are bullish on 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 second quarter, profit rose 36.1% to $2.2 million (2 cents a share) from $1.6 million (2 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 13.1% to $148.8 million from $131.5 million.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 13.3% in the first quarter from the year earlier, climbed 9.6% in the fourth quarter of the last fiscal year from the year-ago quarter and 3.4% in the third quarter of the last fiscal year.

The company has now been profitable for the last eight quarters, and for the last four, profit has risen year over year by an average of 13.6%. The quarter with the biggest boost was the first quarter, which saw a more than twofold surge.

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 September 16, 2011 to November 11, 2011, the stock price had fallen $1.61 (-32.9%) from $4.90 to $3.29. 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 2, 2011 and November 9, 2011 when shares fell for six-straight days, falling 28.5% (-$1.23) over that span. Shares are down 41 cents (-11.1%) year to date.

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

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