BARE - Bare Escentuals, Inc - received an upgrade from Goldman Sachs to Buy

BARE is a small company that is enjoying huge momentum. The company reported a huge quarter in late-February and raised guidance. Earnings estimates have been on the rise as well. Over the past week, this year's numbers have risen five cents to 91 cents per share. Next year's estimates have risen a dime over that time period. Full Analysis Bare Escentuals, Inc. (BARE), together with its subsidiaries, engages in the development, marketing, and sale of cosmetics, skin care, and body care products. It offers a range of eye and face products, such as blushes, face colors, liner shadows, eyeshadows, and glimmers, as well as foundation products under i.d. bareMinerals brand; cosmetics and accessories, including finishing powders, lipsticks, lip-glosses, lip liners, mascaras, application tools, and brushes under i.d. brand; and mineral-based nighttime skin revival treatment under the RareMinerals brand. The company also provides various formulas for bath, body, and face under Bare Escentuals brand; and a range of professional skin care products under the md formulations brand. Bare Escentuals sells its products primarily through infomercials, home shopping television, specialty beauty retailers, company-owned boutiques, spas and salons, and online shopping. It has operations in the United States, Western Europe, Asia, and Australia. On April 12, the company received an upgrade from Goldman Sachs to Buy from Neutral, saying it believes high valuation is supported by the abundance of long-term growth opportunities including U.S. market-share gains, international expansion and skincare. In addition the broker told clients that management has taken a measured approach with respect to new initiatives and noted that guidance excludes any contribution. The company posted outstanding fourth-quarter earnings on a surge in revenues. Sales grew almost 40%, while net income more than tripled. The company, which went public in September, reported a quarterly profit of $16.3 million, or 18 cents per share calculated on 92 million shares outstanding. In the fourth quarter a year, the company earned $4.8 million, or 7 cents per share on 72 million shares. Analysts expect 13 cents per share. BARE also raised its 2007 profit guidance after reporting strong fourth-quarter earnings. The company said it now expects 2007 earnings between 84 cents and 89 cents per share on about 92.6 million shares outstanding, an increase of 3 cents per share over its previous guidance. "We are extremely pleased with our performance for the fourth quarter and fiscal 2006," said Leslie Blodgett, Chief Executive Officer. "The Bare Escentuals brand continues to flourish due to the amazing support of our customers, partners, and employees. We plan to continue this momentum into 2007 with the launch of innovative new products and the expansion of our distribution channels both here and abroad. In addition, we'll be launching a nationwide tour to connect directly with our customers in order to ensure we're doing everything we can to exceed their expectations." The company has only been public for several months, but business is clearly brisk at Bare Escentuals. The valuation is a bit high, but justified due to its strong earnings growth. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home