Shares of The Michaels Companies (MIK, Financial) fell more than 10% after reporting second-quarter earnings of 15 cents per share on $1.05 billion in revenue. While the crafting store beat earnings estimates, it fell $10 million short of revenue expectations.
Operating income was $74.3 million, compared to $88 million in the prior-year quarter. The gross profit declined as a result of higher distribution-related costs, increased promotional activity and occupancy cost deleverage.
Looking ahead to the third quarter, the company expects comparable store sales to increase 1.5% to 3%. Adjusted operating income is projected to be $131 million to $138 million. It anticipates adjusted diluted earnings between 42 cents and 45 cents per share.Â
For fiscal 2018, it forecasts sales between $5.22 billion and $5.29 billion, comparable store sales to increase between 0% and 1.5% and adjusted diluted earnings per share in the range of $2.29 to $2.42.
Shares of Campbell Soup Co. (CPB, Financial) fell more than 1% after posting fourth-quarter earnings per share of 25 cents on $2.22 billion in revenue, a 33.7% year-over-year increase. The company beat earnings estimates by 1 cent, but fell short of revenue expectations.
The gross margin decreased from 35.9% to 29.2%. Excluding some items, the adjusted gross margin decreased 5.6 percentage points to 30.6%.
The company also announced it is selling its international and fresh foods businesses.Ă‚
Shares of Ciena Corp. (CIEN, Financial) jumped more than 12% after reporting third-quarter earnings of 48 cents per share on $818.82 million in revenue, which grew 12.4% year over year. The company beat earnings estimates by 12 cents and revenue expectations by $27.88 million.
"The combination of continued execution against our strategy and robust, broad-based customer demand resulted in outstanding fiscal third quarter performance," President and CEO Gary Smith said. "With our diversification, global scale and innovation leadership, we remain confident in our business model and our ability to achieve our three-year financial targets.”
Disclosure: The author holds no positions in any stocks mentioned.
