Zale Earnings: Here’s Why Investors are Buying Shares Now

Zale Corporation (NYSE:ZLC) had a loss 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 9.93%.

Zale Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.25 in the quarter versus EPS of $-0.61 in the year-earlier quarter.

Revenue: Rose 2.49% to $417.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Zale Corporation reported adjusted EPS loss of $0.25 per share. By that measure, the company beat the mean analyst estimate of $-0.33. It beat the average revenue estimate of $409.04 million.

Quoting Management: “We are pleased to report another solid quarter with a 5.6 percent comp and significant improvement to margins. Importantly, for the year we achieved a significant milestone by delivering our highest net income in six years,” commented Chief Executive Officer Theo Killion. “We intend to build on this momentum as we focus on driving profitable top-line growth and long-term shareholder value.”

Key Stats (on next page)…

Revenue decreased 5.78% from $442.71 million in the previous quarter. EPS decreased to $-0.25 in the quarter versus EPS of $0.13 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 $0.78 and has not changed. For the current year, the average estimate has moved down from a profit of $0.18 to a profit of $0.17 over the last ninety days.

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