Michaels Companies Inc (NASDAQ:MIK) stock was hit hard on Tuesday following the release of its earnings report for the third quarter of 2016.
Michaels Companies Inc reported earnings per share of 40 cents for its third quarter of the year. This is an increase over its earnings per share of 37 cents from the same time last year. However, it came in below Wall Street’s earnings per share estimate of 43 cents.
Revenue reported by Michaels Companies Inc in the third quarter of 2016 was $1.23 billion. The specialty retailer reported revenue of $1.17 billion in its third quarter of 2015. Analysts were expecting the company to report revenue of $1.26 billion in the third quarter of 2016.
Michaels Companies Inc reported net income of $82.09 million during the third quarter of the year. The company’s net income from the same quarter in the year prior was $76.78 million.
“We are the leader in the channel, and we have a strong financial model with consistent cash flows,” Chuck Rubin, Chairman and CEO of Michaels Companies Inc, said in a statement. “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.”
Michaels Companies Inc has also updated it outlook in its most recent earnings report. It is expecting earnings per share for the fourth quarter of 2016 to be between 94 cents and 98 cents. Wall Street is looking for earnings per share of 99 cents for that quarter.
For the full fiscal year of 2016, Michaels Companies Inc is expecting earnings per share to be between $1.86 and $1.90. This is below analysts’ earnings per share estimate of $1.95 for the current year.
MIK stock was down 7% as of Noon Tuesday.
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