Guess?, Inc. (GES) recently announced record third-quarter earnings of 69 cents per share, eclipsing the Zacks Consensus Estimate by 38%. The company sees fourth-quarter earnings ranging between 77 and 80 cents per share. Analysts polled by Zacks are calling for 80 cents, up from last month’s 68 cents.

Company Description

Guess?, Inc. designs, markets, distributes and licenses contemporary apparel, denim, handbags, watches, footwear and other related consumer products.

As of August 1, 2009, the Company operated 431 retail stores in the United States and Canada and 723 retail stores outside of North America, of which 106 were directly owned.

A Record Quarter

The company recently announced record third-quarter earnings of 69 cents per share, eclipsing the Zacks Consensus Estimate by 38%. Net revenue of $522.8 million dipped 1% year-over-year.

Management said each of the company’s businesses performed better than expected in both revenues and earnings as customer continued to respond well to product assortment in all markets around the world. Guess added that the company managed well, controlling costs and inventories tightly to protect profitability. This solid performance resulted in record third quarter earnings and a significant improvement in cash flows in the period.

Bullish Projections

The company sees fourth-quarter earnings ranging between 77 and 80 cents per share. Analysts polled by Zacks are calling for 80 cents, up from last month’s 68 cents.

For the full fiscal year, Guess is expecting earnings to range between $2.45 to $2.48 per share. The full-year Zacks Consensus Estimate of $2.50 per share was increased from last month’s $2.19.

For the following year, the forecast of $2.85 per share compares to last month’s $2.50.

Rewarding Shareholders

Guess also declared a dividend of 12.5 cents per share, noting that the dividend will be payable on December 31 to shareholders of record at the close of business on December 16.

The company offers an industry-leading dividend yield of 1.14%.

Favorable Comparisons

Guess offers a return on equity of 25%, well above the industry average of 9%. The company’s net profit margin of 10% tops the industry average of 2%.

Zacks Investment Research

1. (GES) Guess? Inc. – Bullish Estimates and Solid MomentumGuess? Inc. (GES) is outpacing the market on record second-quarter results and higher Zacks Consensus...
2. (GES) Guess Upgraded to OutperformWe are upgrading Guess? Inc. (GES) to Outperform from Neutral. Although the recession is impacting...
3. (GES) Guess? Inc. – Bull of the DayGuess? (GES) reported better-than-expected results for the first half of 2010, thanks to strong North...
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5. (GES) Guess Beats Forecasts by 45% and Raises DividendGuess Inc. (GES) reported robust second quarter results with earnings of 64 cents per share,...
6. (CHK) – Chesapeake Energy – return on equity (ROE) of 19% exceeds the industry’s average of 16%Chesapeake Energy Corp. (CHK) has seen bullish earnings estimate revisions as recently as last week....

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