Guess Shares Plummet as Forecast Badly Misses (GES)

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Apparel maker Guess?, Inc. ( GES ) late Wednesday posted fourth quarter earnings results that met analyst expectations, but its first quarter and full-year outlook fell well short of Wall Street's view.

The Los Angeles-based company reported fiscal fourth quarter net income of $95.9 million, or $1.05 per share, down from $103.3 million, or $1.11 per share, in the year-ago period.

Revenue rose 2.5% from last year to $775.8 million.

On average, Wall Street analysts expected a matching profit of $1.05 per share, albeit on higher revenue of $778.53 million.

The real story to emerge from Guess' latest report was its lackluster guidance. The company projected first quarter earnings to range from 25 to 28 cents per share, while analysts expect a much-higher 48 cents. Revenue for the period was forecast at $560 million to $575 million, while Wall Street was looking for $610.7 million.

For the full fiscal, which ends in February 2013, GES projected earnings of $2.50 to $2.65 per share on $2.74 billion to $2.78 billion in revenue. Those estimates, too, would badly miss analysts' outlook of $3.21 per share on $2.84 billion in revenue for the year.

Guess shares plunged $4.21, or -11.5%, in premarket trading Thursday.

The Bottom Line
Shares of Guess ( GES ) have a 2.18% dividend yield, based on last night's closing stock price of $36.70. The stock has technical support in the $30 price area. If the shares can firm up, we see overhead resistance around the $38-$40 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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