Guess? Inc. (NYSE:GES) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 8.65%.
Guess? Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 53.33% to $0.14 in the quarter versus EPS of $0.30 in the year-earlier quarter.
Revenue: Decreased 5.24% to $548.9 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Guess? Inc. reported adjusted EPS income of $0.14 per share. By that measure, the company beat the mean analyst estimate of $0.08. It missed the average revenue estimate of $550.06 million.
Quoting Management: Paul Marciano, Chief Executive Officer, commented, “Despite the continued global economic challenges, we are pleased to deliver better than expected first quarter earnings. These earnings reflect the ongoing success within the Company to globally streamline and improve productivity. While we are encouraged by our start to fiscal 2014, the near term outlook for consumer spending remains soft and we are planning our business accordingly. Southern Europe continues to be our main concern going forward.”
Key Stats (on next page)…
Revenue decreased 0% from $0 in the previous quarter. EPS decreased 85.26% from $0.95 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.48 to a profit $0.36. For the current year, the average estimate has moved down from a profit of $2.31 to a profit of $1.79 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)