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