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Michaels (MIK) to Report Q1 Earnings: What's in the Cards?
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The Michaels Companies, Inc. is slated to report first-quarter fiscal 2020 results on Jun 4, before the opening bell. The company delivered a positive earnings surprise of 0.8% in the last reported quarter. Moreover, its bottom line beat estimates by 4.5%, on average, in the trailing four quarters.
The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings is pegged at 6 cents, which suggests an 80.7% decline from the year-ago quarter’s reported figure. Notably, the consensus mark has been unchanged in the past 30 days. The consensus estimate for fiscal first-quarter sales is pegged at $899.1 million, indicating an 18.7% decline from the prior-year quarter’s reported number.
Key Factors to Note
On its last reported quarter’s earnings call, Michaels expected the uncertain impacts of the ongoing COVID-19 outbreak to hurt results in quarters ahead. Hence, it did not provide any fiscal 2020 guidance. Although the company didn’t foresee any supply-chain disruptions in the fiscal first quarter, it has been making efforts to reduce the adverse impacts on its supply chain in quarters ahead.
The Michaels Companies, Inc. Price and EPS Surprise
Further, the company notes that it witnessed lower sales in certain product categories and a marginal rise in conversion in its e-commerce business. Meanwhile, it issued a fiscal first-quarter view, which doesn’t consider any impact of the pandemic. For first-quarter fiscal 2020, the company projected sales of $1.08-$1.1 billion, with comparable store sales of down 1.5% to flat.
Moreover, Michaels has been witnessing weakness in margins for the past few quarters due to aggressive pricing actions, other cost headwinds and higher tariffs. The company predicted cost and tariff-related headwinds to continue hurting results in the fiscal first quarter.
However, management remains optimistic about its Maker strategy and expects the impacts of the positive trends to get reflected in the fiscal first-quarter results. Moreover, the buyout of AC Moore stores is likely to be accretive to its business. Also, the company’s e-commerce operations have been gaining from the BOPUS facility.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Michaels this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Michaels has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Caseys General Stores, Inc. (CASY - Free Report) currently has an Earnings ESP of +57.94% and a Zacks Rank #3.
Chicos FAS, Inc. has an Earnings ESP of +51.92% and a Zacks Rank #3 at present.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
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Michaels (MIK) to Report Q1 Earnings: What's in the Cards?
The Michaels Companies, Inc. is slated to report first-quarter fiscal 2020 results on Jun 4, before the opening bell. The company delivered a positive earnings surprise of 0.8% in the last reported quarter. Moreover, its bottom line beat estimates by 4.5%, on average, in the trailing four quarters.
The Zacks Consensus Estimate for the company’s fiscal first-quarter earnings is pegged at 6 cents, which suggests an 80.7% decline from the year-ago quarter’s reported figure. Notably, the consensus mark has been unchanged in the past 30 days. The consensus estimate for fiscal first-quarter sales is pegged at $899.1 million, indicating an 18.7% decline from the prior-year quarter’s reported number.
Key Factors to Note
On its last reported quarter’s earnings call, Michaels expected the uncertain impacts of the ongoing COVID-19 outbreak to hurt results in quarters ahead. Hence, it did not provide any fiscal 2020 guidance. Although the company didn’t foresee any supply-chain disruptions in the fiscal first quarter, it has been making efforts to reduce the adverse impacts on its supply chain in quarters ahead.
The Michaels Companies, Inc. Price and EPS Surprise
The Michaels Companies, Inc. price-eps-surprise | The Michaels Companies, Inc. Quote
Further, the company notes that it witnessed lower sales in certain product categories and a marginal rise in conversion in its e-commerce business. Meanwhile, it issued a fiscal first-quarter view, which doesn’t consider any impact of the pandemic. For first-quarter fiscal 2020, the company projected sales of $1.08-$1.1 billion, with comparable store sales of down 1.5% to flat.
Moreover, Michaels has been witnessing weakness in margins for the past few quarters due to aggressive pricing actions, other cost headwinds and higher tariffs. The company predicted cost and tariff-related headwinds to continue hurting results in the fiscal first quarter.
However, management remains optimistic about its Maker strategy and expects the impacts of the positive trends to get reflected in the fiscal first-quarter results. Moreover, the buyout of AC Moore stores is likely to be accretive to its business. Also, the company’s e-commerce operations have been gaining from the BOPUS facility.
Zacks Model
Our proven model does not conclusively predict an earnings beat for Michaels this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Michaels has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%.
Stocks Poised to Beat Earnings Estimates
Here are some companies that you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Guess, Inc. (GES - Free Report) presently has an Earnings ESP of +12.75% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Caseys General Stores, Inc. (CASY - Free Report) currently has an Earnings ESP of +57.94% and a Zacks Rank #3.
Chicos FAS, Inc. has an Earnings ESP of +51.92% and a Zacks Rank #3 at present.
5 Stocks to Soar Past the Pandemic: In addition to the companies you learned about above, we invite you to learn about 5 cutting-edge stocks that could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of the decade.
See the 5 high-tech stocks now>>