What trends show in GES's 2025 quarterly earnings?
4/3/2025 04:34pm
Guess (NYSE:GES) is poised to report its quarterly earnings on April 3, 2025, and several trends are emerging that provide insights into the company's performance and market expectations.
1. **Analysts' Expectations**: Forecasted earnings per share (EPS) for Guess in the upcoming quarter are $1.43. This estimate reflects a cautious outlook, considering the company's recent performance and market conditions.
2. **Historical Performance**: Guess has experienced fluctuations in its EPS, with a notable miss in the last quarter where EPS was $0.34, compared to the estimated $0.37, leading to a 5.0% drop in the share price. This indicates that any deviation from expectations could result in significant market reactions.
3. **Market Sentiment**: The consensus rating for Guess is "Buy" with an average one-year price target of $19.29, suggesting a potential upside of 72.69%. However, recent price targets set by Telsey Advisory Group have been reduced, from $18.00 to $13.00, reflecting a more cautious stance on the stock.
4. **Revenue Expectations**: In the previous quarter, Guess missed revenue expectations by 1.7%, reporting revenues of $738.5 million, an increase of 13.4% year-on-year. This mixed performance highlights the need for the company to not only meet but exceed expectations in both earnings and revenue to garner positive market sentiment.
5. **Valuation Concerns**: The company's valuation has been affected by its U.S. weakness, with the sharp decline in performance being primarily a result of internal issues rather than a broader industry downturn. This internal weakness could persist unless significant strategic changes are implemented.
In conclusion, while there is potential for positive sentiment due to the average one-year price target and the anticipation of surpassing earnings estimates, the recent reductions in price targets and the company's internal challenges suggest that Guess's 2025 quarterly earnings report will be closely watched, and any deviations from expectations could have significant market implications.