Apparel maker Guess?, Inc. (
) 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
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
The Bottom Line
Shares of Guess Inc. (
) 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. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.1 out of 5 stars.
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