NEW YORK (TheStreet) -- Shares of Guess (GES) - Get Guess?, Inc. Report are down by 4.46% to $20.35 in pre-market trading on Thursday morning, as the stock continues a decline started in after-hours trading on Wednesday, following the release of its fiscal 2016 financial results.
Although both earnings and revenue exceeded analysts' expectations for the period, the stock is being pressured by weaker than anticipated third quarter guidance.
For the fiscal third quarter Guess has guided for earnings in a range between 8 cents and 12 cents per share. Analysts are expecting earnings of 18 cents per share for the current quarter.
Guess reported net income of $18.3 million or 21 cents per diluted share for the 2016 second quarter. Revenue came in at $546.3 million for the period. Both earnings per share and revenue declined when compared to the same quarter in fiscal 2015.
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 increase in net income, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, a generally disappointing performance in the stock itself and poor profit margins."
You can view the full analysis from the report here: GES Ratings Report