Gymboree Corporation (GYMB) recently revised its earnings guidance for the fiscal fourth quarter which ends Jan 30. Earnings per share are now expected to be in the range of $1.03 to $1.06 which is higher than the prior guidance of 95 cents to $1.03.
Gymboree attributes the rise to better than anticipated gross margin rates resulting from better management of inventory and markdowns. Same store sales are still expected to be in the range of the low to mid-single digits.
Gymboree is a specialty children’s retailer of clothing and accessories with 956 stores in the United States, Canada and Puerto Rico.
Gymboree’s Earnings Surprise Streak
The company continues to beat estimates as it has now racked up a 7 quarter earnings surprise winning streak. Over the last 4 quarters, Gymboree has surprised on average of 3.98%. It is expected to report fiscal fourth quarter results on Mar 10.
You can see its solid earnings surprise track record below:
Value Fundamentals
Gymboree still has attractive valuations. It is trading with a forward P/E of 12.4 and a price-to-book ratio of 2.86. Gymboree also has an outstanding 1-year return on equity of 26.2%, way above the industry average of 7.98%.
Read the Oct 5, 2009 article.
Update to Previous Value Zacks Rank Buy Stocks
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The Hartford Financial Services (HIG) recently sharply raised guidance for the fourth quarter. The company trades with a PEG ratio of just 0.64. Read the full article.
Cymer, Inc. (CYMI) has seen demand pick up for its light sources as the semiconductor industry ramps up production. CYMI has surprised on estimates 2 out of the last 4 quarters by an average of 45.64%. Cymer is trading at 14.8x forward earnings. Read the full article.
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service.
