Michaels Cos. Stock Jumps 7% After Earnings Beat And Upbeat Outlook

By Ciara Linnane Markets MarketWatch Pulse

The Michaels Cos. shares jumped 7% in premarket trade Tuesday, after the company beat fourth-quarter earnings estimates and offered a higher-than-expected outlook for 2017. The arts and crafts store chain said it had net income of $195.3 million, or 95 cents a share, in the quarter, up from $183.7 million, or 87 cents a share, in the year-earlier period. Adjusted per-share earnings came to 96 cents, ahead of the FactSet consensus of 95 cents. Sales rose 4.1% to $1.8 billion, matching the FactSet consensus. For 2017, the company is expecting sales growth of 2.5% to 4.0% and same-store sales to be flat to up 1.5%. It's expecting 2017 EPS to range from $2.05 to $2.17. For the first quarter, the company is expecting same-store sales to be flat to down 1% and for EPS of 38 cents to 40 cents. The FactSet consensus is for full-year EPS of $2.02 and first-quarter EPS of 39 cents. Shares have fallen 14% in the last 12 months, while the S&P 500 has gained 19%.

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