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Market Overview

Earnings Preview for Michaels Companies


On Thursday, December 03, Michaels Companies (NASDAQ:MIK) will release its latest earnings report. Decipher the announcement with Benzinga's help.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts predict Michaels Companies will report earnings of $0.59 per share on revenue of $1.39 billion. In the same quarter last year, Michaels Companies announced EPS of $0.4 on revenue of $1.22 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 47.5%. Sales would be up 13.75% on a year-over-year basis. The company's reported EPS has stacked up against analyst estimates in the past like this:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate -0.08 0.13 1.25 0.49
EPS Actual 0.30 -0.43 1.26 0.40
Revenue Estimate 1.01 B 1.01 B 1.72 B 1.26 B
Revenue Actual 1.15 B 799.89 M 1.72 B 1.22 B

Stock Performance

Shares of Michaels Companies were trading at $10.215 as of December 01. Over the last 52-week period, shares are up 63.32%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Michaels Companies is scheduled to hold the call at 09:00:00 ET and can be accessed here.


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Posted-In: Earnings