Mar. 18, 2010 (Baystreet.ca) --
Apparel maker Guess?, Inc. (GES) late Wednesday said its fourth-quarter profit jumped more than 80% from last year, helped by higher sales, prompting the company to boost its quarterly dividend by 28%.
The Los Angeles-based company reported fourth quarter net income of $86.6 million U.S., or 93 cents U.S. per share, compared with $47.9 million U.S., or 51 cents U.S. per share, in the year-ago period.
Excluding one-time charges, adjusted profit was 96 cents U.S. per share.
On average, Wall Street analysts expected a much lower profit of 82 cents U.S. per share.
Revenue rose 14% from last year, to $642.0 million U.S.
Looking ahead, the company predicted first-quarter earnings of 46 to 48 cents U.S. per share, which would meet or exceed analysts' current estimates for 46 cents U.S.
Guess also boosted its quarterly dividend by 28%, to 16 cents U.S. per share.
Guess shares rose $1.28 U.S., or 2.7%, in premarket trading Thursday.
The Bottom Line
Shares of GES will now have a dividend yield of 1.37%, based on the new higher dividend payout and last night's closing stock price of $46.68 U.S. The stock has technical support in the $40-$41 U.S. price area. If the shares can firm up, there could be overhead resistance around the $50-$54 U.S. price levels.
Guess?, Inc. (GES) is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of five stars.
