WET SEAL Inc, (WTSLA)
Wet Seal Inc. Reports Un-audited Consolidated Earnings Results for the Fourth Quarter and Year Ended January 30, 2010; Provides Earnings Guidance for the First Quarter of Fiscal 2010; to Open 25 to 40 Net Stores; Provides Capital Expenditure Guidance for the Full Year 2010.
The Wet Seal (WTSLA:$4.68,00$0.08,001.74%) reports Q4 sales of $151 million, down from $154.9 mln a year ago. Net income was $0.79 per share, vs. $0.04 per share a year ago. Ex a benefit, EPS was $0.10 per share, ahead of the company's guidance of $0.08 to $0.09 per share, and up from $0.09 per share last year. The Street view was $151 mln in revs and earnings of $0.08 per share.
For Q1, the company is guiding for sales between $138 and $140 million, vs. the Street view of $136 million. Today the price of WTSLA is $4.80 a share.
Many institutions, as a general rule, will not invest in a company which it’s stock is trading below $5 a share. As per the guidance of WTSLA it seems to be that the company is on the right track to be a major ten-age choice of shopping destination. If this is the case than WTSLA can earn as much as a $1 a share for the year 2011, and the stock price can reach $12 a share by the end of the year