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Coach’s Q4 Profit Beats, but Revenue Misses; Shares Plummet after Calling Fiscal 2013 “An Investment Year” (COH)

Luxury handbag maker Coach, Inc. ( COH ) on Tuesday posted mixed fiscal fourth quarter earnings and provided some tepid commentary on 2013, sending its shares plunging in premarket trading.

The New York-based company reported fiscal fourth quarter net income of $251.4 million, or 86 cents per share, compared with $202.5 million, or 68 cents per share, in the year-ago period.

Revenue rose 12% from last year to $1.16 billion.

On average, Wall Street analysts expected a smaller profit of 85 cents per share, albeit on higher revenue of $1.2 billion.

Looking ahead, COH described fiscal 2013 as "an investment year" during which it will make acquisitions and investments in Asian markets like Malaysia and Korea.

Investors were none to fond of that commentary, as Coach shares fell $9.13, or -15%, in premarket trading Tuesday.

The Bottom Line

Shares of Coach ( COH ) have a 1.98% dividend yield, based on last night's closing stock price of $60.58. The stock has technical support in the $53-$55 price area. If the shares can firm up, we see overhead resistance around the $60-$65 price levels.

Coach, Inc. ( COH ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 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 Nasdaq, Inc.

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

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