Guess? (GES) Stock Soars After Earnings Beat

Guess? (GES) stock is rising on heavy trading volume on Wednesday, after the company's fiscal 2016 third quarter earnings results beat analysts' expectations.
By Amanda Albright ,

NEW YORK (TheStreet) -- Guess? (GES) - Get Report stock is popping by 8.09% to $21.12 on heavy trading volume on Wednesday, after the company's fiscal 2016 third quarter earnings results beat analysts' expectations.

After the market close on Tuesday, the Los Angeles-based apparel company reported earnings of 15 cents per share. Revenue declined by 11.7% year-over-year to $520.96 million.

Analysts were expecting earnings of earnings of 11 cents per share on revenue of $521.03 million.

The company is trying to improve its marketing tactics and build its Asia business, CEO Victor Herrero. Revenue in Asia decreased to $59.1 million, down from $71.2 million in the year-ago period.

"We have made some critical hires and are deploying incremental capital to fuel the growth of the markets in this region," he said.

So far today, 2.06 million shares of Guess have traded, versus its 30-day average of 1.09 million shares.

Separately, TheStreet Ratings team rates GUESS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

We rate GUESS INC (GES) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

You can view the full analysis from the report here: GES

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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