Wet Seal Earnings: Here’s Why Investors Like These Results

Wet Seal (NASDAQ:WTSL) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 4.44%.

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Wet Seal Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 50% to $0.03 in the quarter versus EPS of $0.02 in the year-earlier quarter.

Revenue: Decreased 5.1% to $140.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Wet Seal reported adjusted EPS income of $0.03 per share. By that measure, the company beat the mean analyst estimate of $0.01. It beat the average revenue estimate of $137.2 million.

Quoting Management: “We are pleased with the operating and financial momentum we’re beginning to experience,” said John D. Goodman, Chief Executive Officer. “We have made good progress in a short period of time throughout the organization. Our teams have executed well and delivered improvement in virtually every aspect of the business, including product, inventory management, merchandising, marketing, in-store presentation and customer engagement. This allowed us to exceed our financial guidance in the first quarter and forecast a return to positive comp store sales earlier than planned in the second quarter of 2013.”

Key Stats (on next page)…

Revenue decreased 13.15% from $161.65 million in the previous quarter. EPS increased to $0.03 in the quarter versus EPS of $-0.06 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 $0.02 and has not changed. For the current year, the average estimate has moved down from a profit of $0.04 to a loss of $0.01 over the last ninety days.

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