Zale Corp Fourth Quarter Earnings Sneak Peek

Zale Corp (NYSE:ZLC) will unveil its latest earnings on Wednesday, August 31, 2011. Zale Corporation is a specialty retailer of fine jewelry. It operates approximately 1,218 specialty retail jewelry stores and 672 kiosks located mainly in shopping malls throughout the United States of America, Canada and Puerto Rico.

Zale Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of $1.12 per share, a wider loss from the year earlier quarter net loss of $1.02. During the past three months, the average estimate has moved down from a loss of $1.09. Between one and three months ago, the average estimate moved down, but it has been unchanged at a loss of $1.12 during the last month.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the third quarter, it reported a loss of 31 cents per share against a mean estimate of net loss of 49 cents per share. In the second quarter, it missed forecasts by 50 cents.

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Wall St. Revenue Expectations: On average, analysts predict $360.4 million in revenue this quarter, a rise of 4.5% from the year ago quarter. Analysts are forecasting total revenue of $1.73 billion for the year, a rise of 6.8% from last year’s revenue of $1.62 billion.

Analyst Ratings: The limited number of analysts covering the stock seem relatively indifferent about Zale with three of three analysts surveyed maintaining a hold rating.

Key Stats:

The company’s revenue has now risen for two straight quarters. In third quarter, revenue increased 14.5% to $411.8 million from the year earlier quarter. In the second quarter, the figure rose 7.6%.

Competitors to Watch: Zale Corporation (NYSE:ZLC), Blue Nile, Inc. (NASDAQ:NILE), DGSE Companies, Inc. (AMEX:DGSE), Coach, Inc. (NYSE:COH), Signet Jewelers (NYSE:SIG), (NASDAQ:AMZN), eBay (NASDAQ:EBAY), Nordstrom (NYSE:JWN) and Macy’s (NYSE:M).

Stock Price Performance: During June 1, 2011 to August 25, 2011, the stock price had fallen $2.29 (-36.1%) from $6.34 to $4.05. The stock price saw one of its best stretches over the last year between December 14, 2010 and December 29, 2010 when shares rose for 11-straight days, rising 57.5% (+$1.81) over that span. It saw one of its worst periods between April 20, 2011 and April 28, 2011 when shares fell for six-straight days, falling 6% (-23 cents) over that span. Shares are down 21 cents (-4.9%) year to date.

(Source: Xignite Financials)

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