Guess? Beats on Both Top and Bottom Lines

Seth Jayson, The Motley Fool
Updated

Guess? (NYS: GES) reported earnings on May 22. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended April 28 (Q1), Guess? beat slightly on revenue and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped significantly.


Margins dropped across the board.

Revenue details
Guess? reported revenue of $579.3 million. The 11 analysts polled by S&P Capital IQ predicted revenue of $569.8 million on the same basis. GAAP reported sales were 2.2% lower than the prior-year quarter's $592.2 million.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.30. The 13 earnings estimates compiled by S&P Capital IQ forecast $0.26 per share. GAAP EPS of $0.30 for Q1 were 35% lower than the prior-year quarter's $0.46 per share.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 40.6%, 150 basis points worse than the prior-year quarter. Operating margin was 6.8%, 520 basis points worse than the prior-year quarter. Net margin was 4.6%, 260 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $646.0 million. On the bottom line, the average EPS estimate is $0.52.

Next year's average estimate for revenue is $2.73 billion. The average EPS estimate is $2.60.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 147 members out of 177 rating the stock outperform, and 30 members rating it underperform. Among 49 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Guess? a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Guess? is outperform, with an average price target of $38.50.

If you're invested in retailers like Guess?, you should check out The Motley Fool's top stock for 2012. Its founder wrote the book on big box retailing, and it's growing in increasingly important international markets. Click here for instant access to this free report.

At the time thisarticle was published Seth Jayson owned shares of the following at the time of publication: Guess?. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Guess?. Motley Fool newsletter services have recommended creating a stock repair position in Guess?. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement