Brean Murray Carret Cuts Price Target, Estimates on Guess (GES) Ahead of Earnings Tomorrow

Brean Murray Carret & Co. is reiterating its Buy rating on shares of Guess (NYSE: GES) ahead of the release of its Q3 results on November 30, but is cutting its price target from $44 to $39.

The company is scheduled to release its quarterly results following the closing bell at 4:30 pm Eastern Time.

The firm is forecasting management will announces earnings of $0.64 per share for the quarter, $0.09 below the consensus. Brean Murray Carret notes the downside will be due to extremely weak demand out of Italy and out of Europe as a whole. They also mention slightly weaker margins in America and continued pressure in Canada.

For Q4, Brean Murray Carret is reducing its earning estimate from $1.11 to $1.06 as macro conditions in Europe look to remain along with competitive pressure.

To go inline with the new estimates and continued weak macro conditions, the firm is reducing its FY12 and FY13 EPS estimates from $3.13 and $3.80 to $3.02 and $3.55.

An analyst at Brean Murray Carret comments, "We believe the company will remain cash rich. Further, we believe inventories have remained under control, and should be inline with sales growth; management historically has been highly vigilant in terms of keeping inventories under control."

For an analyst ratings summary and ratings history on Guess click here. For more ratings news on Guess click here.

Shares of Guess closed at $27.87 yesterday.

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