Michaels Companies Inc. (NASDAQ: MIK) reported its fiscal third-quarter financial results before the markets opened on Tuesday. The company said that it had $0.40 in earnings per share (EPS) and $1.23 billion in revenue. The Thomson Reuters consensus estimates had called for $0.43 in EPS and revenue of $1.26 billion. In the same period of last year, the retailer posted EPS of $0.37 and $1.17 billion in revenue.
In terms of the outlook for the current quarter, the company expects to have EPS in the range of $0.94 to $0.98, with comparable sales in the range of flat to down 1.5%. The consensus estimates are $0.99 in EPS and $1.81 billion in revenue for the fiscal fourth-quarter.
The board of directors has authorized the repurchase of $300 million of common stock, which is in addition to its previous repurchase authorization. As of December 6, the total authorization for future repurchases was approximately $343.5 million.
On the books, Michaels cash and cash equivalents totaled $149.97 million at the end of the quarter, up from $114.75 million in the same period from last year.
Chuck Rubin, chairman and CEO of Michaels, commented:
In a tough environment, I am encouraged we continued to increase adjusted net income, gain market share, and invest to support our long-term strategy. We are disappointed our plans did not result in expected comp and earnings growth, and we have taken steps to position the fourth quarter for better performance. We are the leader in the channel, and we have a strong financial model with consistent cash flows. Although the industry may be facing some temporary headwinds, we intend to leverage our leadership position to continue to expand our market share while continuing to return cash to shareholders.
Shares of Michaels were last seen down about 6% at $22.83, with a consensus analyst price target of $30.00 and a 52-week trading range of $19.46 to $31.36.
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