Skip to main content

Market Overview

Michaels Companies's Earnings: A Preview

Share:

On Thursday, March 04, Michaels Companies (NASDAQ:MIK) will release its latest earnings report. Benzinga's outlook for Michaels Companies is included in the following report.

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

Wall Street expects EPS of $1.41 and sales around $1.81 billion. In the same quarter last year, Michaels Companies announced EPS of $1.26 on revenue of $1.72 billion.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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 report earnings in line when it publishes results Thursday, quarterly profit would be up 11.9%. Revenue would be have grown 5.05% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.59 -0.08 0.13 1.25
EPS Actual 0.86 0.30 -0.43 1.26
Revenue Estimate 1.39 B 1.01 B 1.01 B 1.72 B
Revenue Actual 1.41 B 1.15 B 799.89 M 1.72 B

Stock Performance

Shares of Michaels Companies were trading at $18.02 as of March 01. Over the last 52-week period, shares are up 435.14%. 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.

 

Related Articles (MIK)

View Comments and Join the Discussion!

Posted-In: BZI-EPEarnings