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Zacks Equity Research Analyzes Top Stocks

Strategic Insights

— 1 min read

Bebe Stores Inc. (Nasdaq: BEBE) and Salesforce.com (NYSE: CRM) were among the stocks featured in the Analyst Blog recently. Bebe posted fourth-quarter results that surpassed the Zacks Consensus Estimate, but plummeted from 18 cents to 4 cents a share. The company has closed eight stores in fiscal year 2009 and plans to close up to 13 more in fiscal year 2010 to mitigate costs. Salesforce.com expanded its reach through a new VAR program, allowing resellers to develop and run applications on Force.com for a $7.50 per user per month fee. The company's pricing strategy allows VARs to determine their own pricing, adding value to the business.

Key Takeaways:

  • Bebe Stores Inc. (Nasdaq: BEBE) reported fourth-quarter earnings of 4 cents a share, surpassing the Zacks Consensus Estimate but plummeting from 18 cents in the prior-year quarter.
  • The company's quarterly earnings excluding one-time items came in at 4 cents a share, while reported earnings came in at breakeven, including employee acquisition and termination costs, asset write-downs and write-offs.
  • Bebe closed eight stores in fiscal year 2009 and plans to close up to 13 more in fiscal year 2010 to mitigate costs.
  • Salesforce.com (NYSE: CRM) expanded its reach through a new VAR program, which allows resellers to develop and run applications on Force.com for a $7.50 per user per month fee.
  • The company's VAR program is an additional sales channel that will add value and generate additional business for Salesforce.com.
  • Salesforce.com's pricing strategy allows VARs to determine their own pricing, adding value to the business.

Statistics:

  • Bebe Stores Inc.'s quarterly earnings excluding one-time items came in at 4 cents a share.
  • Bebe closed eight stores in fiscal year 2009 and plans to close up to 13 more in fiscal year 2010.
  • Salesforce.com's VAR program charges $7.50 per user per month.
  • Zacks Equity Research analyzes over 1,150 publicly traded stocks.
  • Continuous coverage is provided for a universe of 1,150 publicly traded stocks.
  • Recommendations and target prices are six-month time horizons.

Sources:

  • "Profit from the Pros" free daily email newsletter; http://at.zacks.com/?id=4580.
  • About Zacks Equity Research; http://www.zacks.com/performance.
  • Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks; http://www.zacks.com.

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