Department store chain, Kohl's Corporation( KSS ) reported increased profits for the quarter, but missed estimates Thursday.
The Menomonee Falls, WI based company reported third quarter earnings of $215 million, or 91 cents per share, up 1.8% from $211 million, or 80 cents per share last year. Analysts expected EPS of 94 cents.
Revenue was reported at $4.49 billion, increasing 2% from last years revenue of $4.38 billion, and beating estimates of $4.47 billion.
Analysts have been disappointed by KSS this year. The company kept low inventories in their stores in order to avoid extra merchandise, resulting in popular items selling out and decreased profits. To recover, Khol's increased their EPS by buying back shares.
Looking ahead, the company expects forth quarter EPS in the range of $2.00 to $2.08. Analysts are expecting $2.16.
Kohl's shares were down $1.42, or -2.61% during premarket trading Thursday.
The Bottom Line
Shares of Kohl's ( KSS ) have a 2.36% dividend yield, based on last night's closing stock price of $54.32. The stock has technical support in the $50-$52 price area. If the shares can firm up, we see overhead resistance around the $56-$60 price levels.
Kohl's Corporation( KSS ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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