Michaels climbs after crafting better-than-expected 4Q earnings
Michaels Companies Inc (NASDAQ:MIK) rallied Tuesday after reporting better-than-expected fourth-quarter earnings.
For the quarter ended February 2, the Irving, Texas, crafts chain posted adjusted earnings per diluted share of $1.44 on net sales of $1.789 billion, which was down from $1.891 billion a year earlier. The average forecast of analysts was for diluted EPS of $1.42 on revenue of $1.78 billion.
Shares of Michaels climbed 11% to $13.03 in Tuesday’s Nasdaq trading.
READ: Michaels shares slip in pre-market trade after 2018 guidance disappoints
Excluding the extra week in fiscal 2017, adjusted operating income increased 1.8% to $333.2 million and adjusted net income rose 12.9% to $227.1 million for the quarter.
“While I am still getting to know the customer, the operations and the team, I am excited about the long-term opportunities we have to engage with makers of all experience levels and expand our leadership position within the arts and crafts retail industry,” interim CEO Mark Cosby said in a statement.
He joined the company a few weeks ago after CEO Chuck Rubin departed.
On a calendar-shifted basis, same-store sales increased 1.4% for the fourth quarter.
‘Nice momentum’
“As expected, we saw nice momentum in the quarter resulting from investments we made earlier in the year,” Executive Vice President and Chief Financial Officer Denise Paulonis said in a statement.
She cited enhancements made to Michaels.com and the Michaels app, as well as the conversion of 238 additional stores to a flexible merchandising area format.
Investors ignored a disappointing outlook from the company. It projected first-quarter earnings per share of $0.28 to $0.33, compared with the average estimate of $0.40.
Contact [email protected]
Story by ProactiveInvestors
Source: https://www.proactiveinvestors.com/companies/news/216769/michaels-climbs-after-crafting-better-than-expected-4q-earnings-216769.html
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