Kohl’s Q4 Profit Beats, but Forecast Misses; Dividend Raised 28% (KSS)

Department store operator Kohl’s Corporation (KSS) late Wednesday posted an 8% decline in fourth quarter earnings, but still edged out Wall Street expectations. Its forecast for 2012 was weaker-than-expected, but its dividend payout was boosted by 28%.

The Menomonee Falls, WI-based company reported fourth quarter net income of $455 million, or $1.81 per share, compared with $494 million, or $1.66 per share, in the year-ago period.

Revenue edged slightly lower from last year to $6 billion.

On average, Wall Street analysts expected a slightly lower profit of $1.80 per share, on slightly higher revenue of $6.03 billion.

Looking ahead, Kohl’s forecast full-year 2012 earnings of $4.75 per share, which would miss analysts’ current estimate of $4.95 per share for the year.

In a separate announcement, KSS’ board of directors approved a 28% hike in its quarterly dividend payout. The new dividend of 32 cents (up from 25 cents) will be paid on March 28 to shareholders of record as of March 7.

Kohl’s shares fell $1.38, or -2.6%, in premarket trading Thursday.

The Bottom Line
Shares of Kohl’s (KSS) will now have a 2.45% dividend yield, based on the higher dividend payout and last night’s closing stock price of $52.19. The stock has technical support in the $46-$48 price area. If the shares can firm up, we see overhead resistance around the $54-$56 price levels.

Kohl’s Corporation (KSS) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 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.

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