Men's suit seller and tuxedo renter The Men's Wearhouse, Inc. ( MW ) late Tuesday posted a sharp uptick in third quarter earnings and raised its full-year outlook, sending its shares soaring in aftermarket trading.
The Houston-based company reported third quarter net income of $39.9 million, or 77 cents per share, compared with $25.3 million, or 47 cents per share, in the year-ago period. Excluding one-time items, adjusted profit was 79 cents per share.
Revenue rose more than 6% from last year to $584.6 million.
On average, Wall Street analysts expected a much smaller profit of 65 cents per share, on lower revenue of $571.4 million.
Looking ahead, MW forecast a fourth quarter loss of 12 to 15 cents per share, excluding special items, on implied revenue of $605 million to $612 million. Analysts are currently looking for a loss of 11 cents per share on much lower revenue of $564.8 million.
For the full year, the company raised its earnings outlook to a range of $2.28 to $2.31 per share, up from a prior estimate of $2.13 to $2.20. Wall Street analysts expect $2.19 per share for the year.
Men's Wearhouse shares rose $2.07, or +7.6%, in premarket trading Wednesday.
The Bottom Line
Shares of Men's Wearhouse ( MW ) have a 1.77% dividend yield, based on last night's closing stock price of $27.19. The stock has technical support in the $24-$26 price area. If the shares can firm up, we see overhead resistance around the $30-$32 price levels.
The Men's Wearhouse, Inc. ( MW ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Created by Dividend.com