) is slated to release its third quarter fiscal 2013 results
after the market closes on November 28, 2012. The Zacks Consensus
Estimate for the third quarter is pegged at 44 cents
(year-over-year decline of 38.0%) on revenues of $621 million
(year-over-year decline of 3.4%). Both earnings and revenue
estimates are within management's guidance range. The guidance
includes earnings in the range of 42 cents to 46 cents and
revenue in the range of $620 million to $630 million.
Second Quarter Recap
Guess? Inc's second quarter fiscal 2013 adjusted earnings of
49 cents missed the Zacks Consensus Estimate of 50 cents per
share and declined 41.7% from the year-ago earnings of 84 cents.
Earnings declined due to a decrease in revenues.
Revenues in the quarter dropped 6.2% to $635.4 million from
$677.2 million in the prior-year quarter due to lower traffic in
North American stores. Revenue increased 0.4% on a currency
Operating margin shrank 770 basis points year over year to
9.0%, reflecting higher investment in advertising & marketing
along with higher occupancy & selling costs in Europe.
Agreement of Estimate Revisions
Over the past 30 days, only 1 out of the 12 analysts covering
the stock revised its earnings estimate for the third quarter of
fiscal 2013 in the downward direction. None of the analysts
revised their estimates in the positive direction.
Likewise for fiscal 2013, only 1 out of the 12 analysts
changed its estimates in the negative direction over the past 30
days. None of the analysts have revised it in the opposite
The downward revision in estimates can be attributed to the
existing economic pressure, particularly in Europe along with
foreign currency headwinds, which have been hurting margins
Magnitude of Estimate Revisions
The Zacks Consensus Estimate for the third quarter has
remained static over the past 30 days at 44 cents. For fiscal
year 2013, the Zacks Consensus Estimate declined from $2.18 per
share to $2.17 per share over the past 30 days.
Guess? has missed earnings estimates in two of the last four
quarters. It has met the earnings estimate in one quarter while
surpassing estimates in one of the last four quarters. The
earnings surprise ranges from a negative 2.74% to a positive
15.38%, with the average earnings surprise is 3.55%.
Currently, we have a Neutral recommendation on the stock.
Guess? holds a Zacks #5 Rank (short-term 'Strong Sell' rating) in
sharp contrast to its peer,
), which holds a Zacks #1 Rank (short-term 'Strong Buy'
GUESS INC (GES): Free Stock Analysis Report
GAP INC (GPS): Free Stock Analysis Report
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