The Michaels Companies (MIK) Beats Q4 Expectations

The Michaels Companies, Inc. (MIK) reported fourth quarter EPS of $0.75 before the opening bell Thursday, compared to the consensus estimate of $0.74. Revenues increased 3.4% from last year to $1.61 billion. Analysts expected revenues of $1.60 billion. The stock is up 1.20% to $29.55/pre-market.

For the full-year 2014, the arts and crafts retailer reported adjusted net income of $303 million, or $1.46 per share, a 12.2% increase when compared to $270 million, or $1.30/shr, for fiscal 2013. Revenue was reported as $4.74 billion.

For Q1/15, Michaels provided EPS guidance of $0.31-$0.33 versus consensus of $0.35 per share.

Chuck Rubin, Chief Executive Officer, stated, “I am very pleased with our fourth quarter results, which reflect continued strong execution of our multi-year strategy…As we look to fiscal 2015, we will continue to build upon our vision 2020 strategy to deliver a strong in store and online shopping experience, increase our market share and expand our customer base.”

On valuation measures, Michaels Cos. Inc. shares, which currently have an average 3-month trading volume of 460K shares, trade at a trailing-12 P/E of 28.60, a forward P/E of 17.08 and a P/E to growth ratio of 1.12. The median Wall Street price target on the name is $30.00 with a high target of $35.00. Currently ticker boasts 6 ‘Buy’ endorsements, compared to 6 ’Holds’ and no ‘Sell’.

Profitability-wise, MIK has a t-12 profit and operating margin of 4.14% and 13.11%, respectively. The $5.97 billion market cap company reported $378.00 million in cash vs. $3.15 billion in debt in its most recent quarter.

MIK currently prints a one year return of about 72% and a year-to-date return of around 18%.

Michaels Cos. Inc. owns and operates a chain of arts and crafts specialty retail stores in North America. The company was founded in 2013 and is based in Irving, Texas.

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