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Shares of Michaels bounce after earnings, guidance beat Street expectations

Employee Nikki Bush stocks acrylic paint at a Michaels Stores Inc. location in Cincinnati, Ohio.
Luke Sharrett | Bloomberg | Getty Images

Shares of Michaels bounced on Tuesday after the company reported fourth-quarter earnings and full-year guidance above expectations.

Shares closed the day up more than 2 percent.

The Texas-based company said it expects 2017 earnings per share of between $2.05 and $2.17 a share, above the $2.04 estimate from analysts polled by Reuters.

Michaels posted fourth-quarter adjusted earnings of 96 cents per share on revenue of $1.75 billion on Tuesday. Net sales rose 4.1 percent year-over-year from $1.7 billion.

A consensus of analysts polled by Thomson Reuters expected earnings of 95 cents per share on revenue of $1.76 billion.

Michaels attributed the sales increase to sales from 19 more stores and its acquisition of Lamrite West last February, according to a Tuesday press release.

Comparable store sales fell 1 percent in the fourth quarter, slightly better than the analyst expectation for a decline of 1.2 percent, according to FactSet. The company expects 2017 comparable store sales to range from flat to up 1.5 percent.

Michaels shares 5-day performance