The stock price of Michaels Companies Inc (NASDAQ:MIK) surged after reporting solid financial results for the second-quarter and upbeat guidance for the full-year 2014.
The shares of Michaels Companies Inc (NASDAQ:MIK) were trading $16.21 per share, up by more than 7% at the time of this writing around 11:26 A.M. in New York.
Michaels Companies’ financial results
During the second-quarter, Michaels Companies Inc (NASDAQ: MIK) posted $948 million in revenue, up by 4.9% from $904 million. The company reported a net loss of $48 million.
The company said its adjusted net income (excluding costs related to the IPO, related party/sponsor fees, debt refinancing costs) was $30 million, higher than the $21 million adjusted income in the same period a year ago.
Its adjusted earnings increased 50% to $0.15 per share compared with $0.10 per share in the year ago quarter.
Michaels Companies Inc (NASDAQ:MIK) said its gross profit climbed 40 basis points to 37.7% in the second quarter. According to the company, its operating income declined to $52 million from $71 million in the year-ago quarter.
Its effective tax rate for the second quarter was 37.7% compared with 29.2% in the same period last year. Michaels Companies Inc (NASDAQ:MIK) ended the second-quarter with $90 million in cash, $3.37 billion in debt and approximately $564 million in availability under its asset-based revolving credit facility. The company had $937 million worth of inventory by the end of the quarter.
In a statement, Chuck Rubin, CEO of Michaels Companies Inc (NASDAQ:MIK) said, “We are very pleased to build on our solid start to fiscal 2014 with another quarter of strong performance. Broad-based sales strength was accompanied by healthy margins and our characteristic expense discipline, even as we invested in our strategic initiatives.”
For the second-half of this year, Michaels Companies Inc (NASDAQ:MIK) estimated that it would be able to generate $0.98 to $1.02 in earnings per share. The company expected to achieve earnings of $1.38 to $1.42 per share for the full fiscal 2014 compared with the consensus estimate of $1.36 per share.