BY Billy Fisher:
Contributor, Stock Traders Daily
Real Time Trading Reports: Included are detailed trading reports designed to help investors realize opportunities in these companies. The reports are linked to the stock symbols in the article below.
(La Jolla, CA) As the Q3 earnings season begins to wind down, a host of retailers will be reporting their quarterly results. Here is what to expect when three of these companies report their earnings tomorrow as well as a major player in the gaming industry.
A Diamond in the Rough
When the women’s apparel designer bebe Stores (Nasdaq: BEBE) reports its fiscal year Q1 results on Thursday, analysts will be looking for the company to swing to a net loss of $0.03 per share from a net profit of $0.12 per share in the prior year. Sales are expected to decrease by 22.9% on a year-over-year basis. Shares of bebe are already down 13.0% so far this year.
Last quarter, this small cap retailer was struck by
unfavorable occupancy leverage as well as higher
markdowns.
Same-store sales were down 29.6% when compared to the
company’s fiscal Q4 in 2008. bebe management also
announced its intentions to close up to 13 stores over
the course of FY 2010. Traders looking to trade this
stock ahead of earnings are advised to view our
free BEBE
trading report.
Results are expected to be better at Blue Nile (Nasdaq: NILE). The online jewelry retailer is expected to post a 6.7% gain in EPS on flat sales growth when compared to the company’s year ago quarter. The company’s stock has been one of the better performing small cap retailers in 2009. Year-to-date, shares have soared 140.5%. Traders who are looking to bet on Blue Nile’s results tomorrow can view our free NILE trading report prior to taking action.
On the Rebound
Another high profile small cap retailer that has seen its stock rebound significantly in 2009 is CROCS (Nasdaq: CROX). The stock price of this footwear designer is up a staggering 431.5% in 2009. When the company reports its earnings after the closing bell tomorrow, analysts are expecting CROCS to check in with a net loss of $0.08 per share compared to a net loss of $0.53 in the company’s year ago quarter. Sales are expected to slide by 10.2%.
In August the company reported several positive developments in conjunction with the release of its Q2 results. The company’s revenue for the quarter exceeded guidance and its cash balance increased by 50% in the first-half of the year. CROCS also announced full repayment of its outstanding credit facility and a 22% reduction in inventory since the end of 2008. Traders looking to play this stock ahead of earnings can benefit by checking out our free CROX trading report.
Shares of MGM Mirage (NYSE: MGM) have bounced back since hitting a 52-week low in March, but are still well below levels from a year-ago. When the casino operator reports its results before the market open tomorrow, Wall Street will be expecting the company to report a net loss of $0.07 per share on a 17.3% decline in sales when compared to MGM’s prior year quarter. Last year, the company reported Q3 EPS of $0.22. Traders looking to get long or short this stock should check out our free MGM trading report before pulling the trigger.
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