bebe - Aggressive Growth
02 May 2012 - 10:00AM
Zacks
bebe stores (BEBE) is about to report earnings and could be
a short squeeze candidate. The stock has beaten earnings for three
straight quarters which has helped make it a Zacks #1 Rank (Strong
Buy).
Company Description
bebe stores engages in the design, development, and production
of women's apparel and accessories. Its products include a range of
separates, tops, dresses, active wear, and accessories in career,
evening, casual, and active lifestyle categories. The company
markets its products under the bebe, BEBE SPORT, bbsp, and 2b bebe
brand names targeting 21 to 34-year-old woman. As of July 2, 2011,
it operated 252 retail stores. The company was founded in 1976 and
is headquartered in Brisbane, California.
bebe Meets or Beats in Three Straight Quarters
bebe has met or topped earnings estimates in three straight
quarters. Over the course of the last three quarters, the company
has topped the Zacks Consensus Estimate by an average of $0.01, but
the percent beat averages out to be 88%. Those are some heavy
pennies! The stock, however, has only moved by an average of 2.7%
following the big beats.
In the September 2011 quarter, the stock rose 5.1% following a
200% beat of the bottom line. The company reported earnings of
$0.03, $0.02 better than the Zacks Consensus Estimate and were 400%
higher than year ago levels. Revenues of $126 million were $4
million ahead of the Zacks Consensus Estimate and showed an
increase of 6.7% from the year ago period.
bebe Most Recent Reported Earnings
On February 2, 2012 bebe reported revenue of $152 million,
roughly $4 million ahead of the Zacks Consensus Estimate and up
from $136 million reported in year ago quarter. In addition,
earnings per share came in at $0.08, $0.01 higher than the Zacks
Consensus Estimate of $0.07. The beat of 14% was the smallest since
the March 2011 quarter when bebe met the Zacks Consensus
Estimate.
bebe Expected to Report Earnings
bebe is expected to report earnings on May 3, 2012. The Zacks
Consensus Estimate is calling for revenue of $119 million and EPS
of $0.01. The year ago period saw revenue of $109 million and a
loss of $0.03. Following the release last year, the stock moved
higher by 4.7%.
bebe Earnings a Squeeze Play
From the end of January 2012, through the middle of February,
short interest in bebe shares decreased from 1.6 million shares to
1.5 million shares. The early February earnings release undoubtedly
aided in the squeeze over that time period, but since mid-February,
short interest has increased. The most recent data from NASDAQ
shows short interest as being more than 1.625 million shares.
Should the company beat estimates, then there could likely be
another short squeeze.
![A chart for bebe bebe - ticker BEBE> <P ALIGN=](http://www.zacks.com/images/upload_dir/1335897047.jpg)
Brian Bolan is the Aggressive Growth Stock
Strategist for Zacks.com. He is also the Editor in charge of the
Zacks Home Run Investor service You can follow him at
twitter.com/bbolan1
BEBE STORES INC (BEBE): Free Stock Analysis Report
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