Department store operator Kohl's Corporation ( KSS ) on Thursday posted a 16% rise in fourth quarter profits and initiated its very first quarterly dividend payout of 25 cents per share.
The Menomonee Falls, WI-based company reported fourth quarter net income of $493 million, or $1.66 per share, compared with $431 million, or $1.40 per share, in the year-ago period.
Revenue rose 6% from last year to $6.04 billion.
On average, Wall Street analysts expected a slightly smaller profit of $1.65 per share, on matching revenue of $6.04 billion.
Looking ahead, Kohl's forecast full-year 2011 profit to range from $4.05 to $4.25 per share on implied revenue of $19.12 billion to 19.49 billion. Analysts expect a higher profit of $4.37 per share on $19.36 billion in revenue.
The company also boosted its share buyback program and announced its first quarterly dividend payout of 25 cents per share.
Kohl's shares fell 37 cents, or -0.7%, in premarket trading Thursday.
The Bottom Line
Shares of Kohl's ( KSS ) will have a 1.92% dividend yield, based on last night's closing stock price of $52.02. The stock has technical support in the $48-$49 price area. If the shares can firm up, we see overhead resistance around the $54-$56 price levels.
Kohl's Corporation ( KSS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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