Branded apparel maker V.F. Corporation (VFC) said Tuesday that its third quarter profit fell 7% from last year, barely missing analyst estimates, and the company increased its dividend by 2%.
The Greensboro-based company reported third quarter net income of $217.9 million, or $1.94 per share, compared with $233.9 million, or $2.10 per share, in the year-ago period. Revenue fell 5% from last year to $2.1 billion.
On average, Wall Street analysts expected a slightly larger profit of $1.95 per share, on matching revenue of $2.1 billion.
Looking ahead, V.F. said that it now expects full-year earnings to be in the upper range of its previously announced range of $4.70 to $5 per share.
The company also announced a 2% increase in its quarterly dividend, to 60 cents per share, marking the 37th straight year it has increased its dividend payout.
V.F. Corp shares fell $5.49, or -7%, in premarket trading Tuesday.
The Bottom Line
We have been recommending shares of VFC since Oct.19, when the stock was trading at $76.14. The company will now have a dividend yield of 3.06%, based on the higher dividend payout and last night's closing stock price of $78.49.
V.F. Corporation (VFC) is a ''recommended'' dividend stock, holding a Dividend.com DARS Rating of 3.5 out of 5 stars.
