Guess Q3 Earnings Drop 45%; Outlook Slashed Again; Special Dividend Announced (GES)

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Apparel maker Guess?, Inc. ( GES ) late Wednesday posted mixed third quarter earnings and cut its full-year outlook for the third time this year, but its announcement of a sizable special dividend was enough to send its shares higher in aftermarket trading.

The Los Angeles-based company reported third quarter net income of $36.6 million, or 43 cents per share, compared with $66.3 million, or 71 cents per share, in the year-ago period.

Revenue fell 2.2% from last year to $628.8 million.

On average, Wall Street analysts expected a slightly higher profit of 44 cents per share, albeit on lower revenue of $624.54 million.

Looking ahead, GES forecast fourth quarter earnings of 85 to 95 cents per share, which could miss analysts' view of 95 cents. For the full year, the company cut its outlook for the third time this year. It now expects full-year earnings of $2.05 to $2.15 per share, down from a prior estimate of $2.15 to $2.30. Analysts are looking for $2.16 per share for the year.

On a positive note, Guess announced a special dividend of $1.20 per share, to be paid on Dec. 28. An ex-dividend date has yet to be established for the payout.

Guess shares rose $1.80, or +7%, in premarket trading Thursday.

The Bottom Line
Shares of Guess Inc. ( GES ) have a 3.17% dividend yield, based on last night's closing stock price of $25.25. The stock has technical support in the $22-$23 price area. If the shares can firm up, we see overhead resistance around the $28-$30 price levels.

Guess?, Inc. ( GES ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.1 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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