Zale Earnings: Here’s Why the Stock is Rising Now

Zale Corporation (NYSE:ZLC) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 25.93%.

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Zale Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.13 in the quarter versus EPS of $-0.14 in the year-earlier quarter.

Revenue: Decreased 0.49% to $443 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Zale Corporation reported adjusted EPS income of $0.13 per share. By that measure, the company beat the mean analyst estimate of $-0.02. It missed the average revenue estimate of $443.83 million.

Quoting Management: “We delivered strong results in March and April after a slow start to the quarter in February, which resulted in our tenth consecutive quarter of positive comps,” commented Theo Killion, chief executive officer. “These results reflect the recent investments we have made to improve the effectiveness of our guest-facing teams and the appeal of our product offerings.”

Key Stats (on next page)…

Revenue decreased 33.95% from $670.75 million in the previous quarter. EPS decreased 87.25% from $1.02 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.20 to a loss $0.23. For the current year, the average estimate has moved down from a profit of $0.17 to a profit of $0.12 over the last ninety days.

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