Tuxedo and suit renter/retailer The Men’s Wearhouse, Inc. (MW) late Wednesday posted disappointing third quarter earnings results and cut its fourth quarter and full year outlooks, citing weaker-than-expected demand.
The Houston-based company reported third quarter net income of $48.8 million, or 95 cents per share, compared with $39.9 million, or 77 cents per share, in the year-ago period.
Revenue rose 8% from last year to $630.97 million.
On average, Wall Street analysts expected a higher profit of 97 cents per share, on larger revenue of $631.30 million.
Looking ahead, MW cut its fourth quarter earnings forecast dramatically. The company now expects a fourth quarter net loss of 5 cents per share to a profit of 1 penny per share. It had previously predicted earnings of 12 to 15 cents. Analysts are looking for 13 cents per share for the period.
For the full year 2012, Men’s Wearhouse lowered its earnings outlook to a range of $2.57 to $2.63 per share, down from $2.74 to $2.80 per share previously. Analysts expect $2.78 per share for the year.
Men’s Wearhouse shares fell $3.35, or -10.7%, in premarket trading Thursday.
The Bottom Line
Shares of Men’s Wearhouse (MW) have a 2.30% dividend yield, based on last night’s closing stock of $31.35. The stock has technical support in the $28 price area. If the shares can firm up, we see overhead resistance around the $34-$35 price levels.
The Men’s Wearhouse, Inc. (MW) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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