Zale Corp First Quarter Earnings Sneak Peek

The Cheat Sheet

Zale Corp will unveil its latest earnings on Monday, November 21, 2011. Zale is a specialty retailer of fine jewelry. It operates specialty retail jewelry stores and kiosks located mainly in shopping malls throughout the United States, Canada and Puerto Rico.

Zale Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of $1.42 per share, a narrower loss from the year earlier quarter net loss of $1.59.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported a loss of $1.02 per share against a mean estimate of net loss of $1.12, and the quarter before, the company exceeded forecasts by 18 cents with a loss of 31 cents versus a mean estimate of net loss of 49 cents.

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Wall St. Revenue Expectations: On average, analysts predict $338.6 million in revenue this quarter, a rise of 3.5% from the year ago quarter. Analysts are forecasting total revenue of $1.81 billion for the year, a rise of 4% from last year’s revenue of $1.74 billion.

Analyst Ratings: Analysts seem relatively indifferent about Zale with three of four analysts surveyed maintaining a hold rating.

A Look Back: In the fourth quarter of the last fiscal year, the company’s loss widened to a loss of a $32.6 million ($1.02 a share) from a loss of $28.5 million (89 cents) a year earlier, but beat analyst expectations. Revenue rose 9.4% to $377.3 million from $345 million.

Key Stats:

Revenue has gone up for three straight quarters. It rose 14.5% in the third quarter of the last fiscal year from the year earlier and 7.6% in the second quarter of the last fiscal year.

Competitors to Watch:  Zale Corporation , Blue Nile, Inc. , DGSE Companies, Inc. , Coach, Inc. , Signet Jewelers , Amazon.com , eBay , Nordstrom and Macy’s .

Stock Price Performance: During October 18, 2011 to November 15, 2011, the stock price had risen 46 cents (14.6%) from $3.14 to $3.60. 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 August 29, 2011 and September 6, 2011 when shares fell for six-straight days, falling 19.7% (-94 cents) over that span. Shares are down 66 cents (-15.5%) year to date.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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