Michaels (MIK) Stock Gains 8% On Q4 Earnings & Sales Beat
Zacks Investment Research | Mar 19, 2019 10:05PM ET
The Michaels Companies, Inc. (NASDAQ:MIK) reported fourth-quarter fiscal 2018 results, wherein both the top and bottom line outpaced the Zacks Consensus Estimate. Also, earnings improved year over year. With this, the company delivered fourth positive earnings surprise with second consecutive sales beat.
However, management’s earnings guidance for first-quarter and fiscal 2019 fell shy of analysts’ expectations. Following the earnings release, shares of this Texas-based company jumped 8.3% on Mar 19.
Q4 Numbers
Michaels’ adjusted earnings of $1.44 per share outshined the Zacks Consensus Estimate by a penny and improved 21% from the prior-year quarter number. Excluding the 53rd week in fiscal 2017, the bottom line rose 30.3%. The upside was backed by efficient expense management and the impact of the ongoing share repurchase program.
Net sales of this arts and crafts specialty retailer fell 5.4% year over year to $1,789.1 million. However, the top line surpassed the Zacks Consensus Estimate of $1,784 million. The year-over-year decrease was mainly due to 53rd week in last fiscal, the closure of all 94 full-size Aaron Brothers outlets and a dip in comparable store sales (comps). The decline was somewhat offset by sales from the operation of 20 additional flagship stores (net of closures).
The Michaels Companies, Inc. Price, Consensus and EPS Surprise
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