Men’s Wearhouse Swings to Q4 Loss (MW)

in Gold Gold Investing by admin — March 11, 2010 6:57 am | no comments

Mens dress clothing retailer The Men’s Wearhouse, Inc. ( MW ) said late Wednesday that it swung to a fourth quarter loss, hurt by one-time charges, but adjusted results beat expectations. The Houston-based company reported a fourth quarter net loss of $18.9 million, or 36 cents per share, compared with a profit of $1.5 million, or 3 cents per share, in the year-ago period. Excluding one-time charges, its adjusted loss was 11 cents per share. Revenue fell 4% from last year, to $457.2 million. On average, Wall Street analysts expected a worse loss of 16 cents per share, albeit on higher revenue of $465.9 million. Looking ahead, the company forecast first quarter earnings of 12 to 16 cents per share, which would beat analysts’ current estimates for 9 cents per share. Still, Men’s Wearhouse shares plunged $1.68, or -6.8%, in premarket trading Thursday. The Bottom Line We have avoided shares of MW since our early June 2008 coverage began, when the stock was trading at $19.80. The company has a 1.45% dividend yield, based on last night’s closing stock price of $24.83. The stock has technical support in the $20 price area. If the shares can gain on this morning’s momentum, we see overhead resistance around the $27-$28 price levels. We would remain on the sidelines for now. 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. Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .