Guess (GES) Beats on EPS, Misses Revenue

Guess’ Inc. (GES) rallied $2.04, or 12%, to $18.78 in in the extended session Wednesday after it reported fiscal-fourth quarter earnings.

The apparel retailer handed in non-GAAP earnings of $0.63 per share on revenue of $696.7 million vs. Wall Street estimates of $0.57 per share on revenue of $701.83 million. Revs fell 9.3 percent from the corresponding period in 2013.

For the full-year 2014, the company reported net earnings of $94.6 million, or $1.11 per share. Revenue was reported as $2.42 billion from $2.57 billion in the prior year.

For Q1/16, GES provided EPS guidance of ($0.06)-($0.03) versus consensus of ($0.03) per share. The company also issued revenue projection of $481-$486 million, compared to the consensus revenue estimate of $489.60 million. The company also announced today that its Board of Directors has approved a quarterly cash dividend of $0.225 which will be payable on April 17, 2015 to shareholders of record at the close of business on April 1, 2015.

On valuation measures, Guess? Inc. shares, which currently have an average 3-month trading volume of 1.46 million shares, trade at a trailing-12 P/E of 13.00, a forward P/E of 16.10 and a P/E to growth ratio of (3.49). The median Wall Street price target on the name is $20.00 with a high target of $25.00. Currently ticker has 1 ‘Buy’ endorsement, compared to 8 ’Holds’ and 3 ‘Sell’.

Profitability-wise, GES has a t-12 profit and operating margin of 4.43% and 7.11%, respectively. The $1.43 billion market cap company reported $483.48 million in cash in its most recent quarter.

GES currently prints a one year loss of 37.37% and a year-to-date loss of around 18.60%.

The chart below shows where the equity has traded over the last 52 weeks.

Guess? Inc. is a designer and distributor of contemporary apparel and accessories for men, women, and children. The company was founded in 1981 and is headquartered in Los Angeles, California.

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