Warnaco has Solid Q1; Revises Guidance – Zacks Tale of the Tape | Stock Market News & Stocks to Watch from StraightStocks

Warnaco has Solid Q1; Revises Guidance – Zacks Tale of the Tape

Source: http://www.zacks.com/stock/news/20089/Warnaco+has+Solid+Q1%3B+Revises+Guidance++-+Zacks+Tale+of+the+Tape
Posted on Tuesday, May 12th, 2009 | In Market Commentary, Stocks to Watch

Contributed by: Zacks Market Commentaries (http://www.zacks.com/) -

The Warnaco Group Inc. (WRC) reported first-quarter EPS that was well ahead of the consensus and also lifted the low end of its fiscal profit outlook.

Earnings, excluding items, came in at $1 per share, against the consensus of 74 cents. Revenue fell 5% to $538.4 million. On a constant currency basis, sales rose 6% due to the strength of its brands, including Calvin Klein.

Warnaco, a Zacks #2 Rank (”Buy”) company, now sees full-year earnings between $2.50 and $2.66 per share, instead of its earlier guidance of $2.40 to $2.66.

The company expects revenue to decline between 9% and 12%. It previously saw a revenue drop of 9% to 14%.

Currently, the 2009 consensus stands at $2.49 per share, which has been steady for the past month but is down 4 cents from 2 months ago. The estimate next year has moved to $2.83 per share from $2.80 in the past month, reflecting an upward revision by 1 analyst out of 5.

Shares are down more than 1% today on heavy volume of 1.8 million, compared to the daily average of 940,573.

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