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Monday, June 24, 2024

Guess? surges after beating expectations on income and revenue By allskynews

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allskynews — Attire maker Guess?, Inc. (NYSE:) jumped after beating expectations for income, although its third-quarter outlook was under consensus targets when it reported after the shut on Wednesday.

The corporate adjusted earnings of 72 cents a share on income of $664.5 million. Analysts anticipated earnings per share of 40 cents on income of $640.5M. Income was up 3% from the identical time final yr.

CEO Carlos Alberini mentioned: “We’re more than happy with our second quarter efficiency, which exceeded our expectations for top-line development and delivered a big beat in working earnings and earnings per share for the interval. Our worldwide companies continued to carry out strongly with sturdy income development and our Americas Retail enterprise achieved a sequential enchancment in efficiency in comparison with the primary quarter, as we drove higher buyer conversion in shops.”

It sees third quarter adjusted earnings per share of 55 cents to 64 cents and income rising 2.5% to 4.5%. Analysts anticipated third quarter earnings per share of 71 cents.

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For the total yr, the corporate sees adjusted earnings per share of $2.88 to $3.08 and income rising 2.5% to 4.0% versus prior steerage of 2-4%.

GES shares rose greater than 18% in early Thursday buying and selling.

Reacting to the report, UBS analysts instructed buyers that whereas it was a superb quarter, they’re sustaining a Impartial ranking and $22 worth goal on the inventory.

“GEs delivered a beat and lift Q2 report. This reinforces our view the corporate is on the correct path to stabilize working margins whereas delivering LSD% gross sales development,” they wrote. “Nevertheless, we consider a difficult retail surroundings will negatively influence GES’ Americas enterprise and trigger its 2H23 EPS development to sluggish.”

Assessing GES’s nearer-term prospects, the analysts said that the agency doubts the corporate’s P/E will increase in a decelerating gross sales surroundings.

“We forecast a 5% 5-yr. EPS CAGR and consider this outlook is pretty priced. We thus proceed to price it Impartial,” they concluded.

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(Extra reporting by Sam Boughedda)

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