What to Look for in Guess Earnings

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Guess? Inc. (NYSE: GES) is set to release its fiscal second-quarter earnings report after the markets close on Wednesday. This stock has been bouncing off of its 52-week lows over the course of the summer, despite markets hitting new all-time highs. The stock had a huge gut check when it reported its first-quarter earnings, and it seems that it has only limped on since them. Considering shares have made a slight recovery as of late, is this an optimistic signal ahead of the report?

The consensus estimates call for $0.07 in earnings per share (EPS) on $550.53 million in revenue. The same period of last year reportedly had $0.21 in EPS on revenue of $546.26 million.

Guidance for the second quarter was given as EPS in the range of $0.04 to $0.08 and net revenues growing by 0.5% to 2.5%.

This company pays out one of the highest dividends in the retail industry, currently yielding about 5.7%. But the yield is only this high because shares have been beat up for a few years.

In the previous earnings report, CEO Victor Herrero commented:

The start to the year has been a bit more challenging than we anticipated especially in the Americas and to a lesser extent in Greater China. These developments are reflected in our guidance for the second quarter as well as our updated guidance for the full year. We are still confident that we will be able to achieve the three year plan goals we provided in March this year, but with a different cadence than initially planned.

Prior to the release of the upcoming earnings report, a few analysts issued calls on Guess:

  • Piper Jaffray has a Sell rating with a $12 price target.
  • Mizuho reiterated a Neutral rating with a $17 price target.
  • B. Riley reiterated a Neutral rating with a $16 price target.
  • Odeon Capital Group upgraded to a Hold rating.
  • Miller Tabak has a Hold rating.
  • Jefferies reiterated a Hold rating with an $18 price target.
  • Topeka Capital Markets has a Hold rating with a $16 price target.
  • Telsey Advisory Group has a Market Perform rating.

Excluding Tuesday’s move, Guess has underperformed the broad markets, with the stock down 15% year to date. Over the past 52 weeks, the stock is down 19%.

Shares of Guess were trading up 1.6% at $15.83 on Tuesday, with a consensus analyst price target of $17.30 and a 52-week trading range of $13.78 to $23.45.