Wet Seal Hits Estimates, but GAAP Results Lag Last Year's
Wet Seal (NAS: WTSLA) reported earnings on May 22. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended April 28 (Q1), Wet Seal met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to zero.
Margins dropped across the board.
Wet Seal reported revenue of $147.9 million. The four analysts polled by S&P Capital IQ hoped for a top line of $149.3 million on the same basis. GAAP reported sales were 5.2% lower than the prior-year quarter's $156.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.02. The four earnings estimates compiled by S&P Capital IQ anticipated $0.02 per share. GAAP EPS contracted to zero from the prior-year quarter's $0.08.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.5%, 480 basis points worse than the prior-year quarter. Operating margin was 2.1%, 660 basis points worse than the prior-year quarter. Net margin was -0.2%, 530 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $145.0 million. On the bottom line, the average EPS estimate is -$0.05.
Next year's average estimate for revenue is $633.4 million. The average EPS estimate is $0.08.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Wet Seal is outperform, with an average price target of $4.12.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio.The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.
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