The 10-second takeaway
For the quarter ended March 31 (Q3), Bebe Stores beat slightly on revenues and missed on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share improved to zero.
Margins grew across the board.
Bebe Stores logged revenue of $121.0 million. The five analysts polled by S&P Capital IQ expected net sales of $119.3 million on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $109.5 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 $0.00. The four earnings estimates compiled by S&P Capital IQ anticipated $0.01 per share. GAAP EPS dropped to zero from the prior-year quarter's -$0.03.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 38.7%, 190 basis points better than the prior-year quarter. Operating margin was -0.3%, 400 basis points better than the prior-year quarter. Net margin was -0.2%, 220 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $138.6 million. On the bottom line, the average EPS estimate is $0.03.
Next year's average estimate for revenue is $536.5 million. The average EPS estimate is $0.14.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 425 members out of 535 rating the stock outperform, and 110 members rating it underperform. Among 158 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 131 give Bebe Stores a green thumbs-up, and 27 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Bebe Stores is outperform, with an average price target of $11.38.
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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 of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.