Container Store Group Inc. (NYSE:TCS) will release its financial results for the first quarter of fiscal 2014 after market close on Tuesday, July 8, 2014. The company will host a conference call at 4:30 p.m. Eastern Time to discuss the financial results.
Wall Street anticipates that the Specialty Retailer will lose $0.06 per share for the quarter. iStock expects TCS to top Wall Street's consensus number, the iEstimate is -$0.05. Container Store's consensus revenue estimate for Q1 is $ 174.21 million.
The Container Store Group, Inc. is engaged in the retailing of storage and organization products in the United States. It operates in two segments, TCS and Elfa. The company's retail stores provide various lifestyle products, including bath, box, closets, collections, containers, food storage, gift packaging, hooks, kitchen, office, shelving, storage, trash, and travel, as well as its Elfa products. As of March 1, 2014, it operated 63 stores with an average size of approximately 19,000 selling square feet in 22 states and the District of Columbia.
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TCS shares have been under pressure since shortly after it November 2013 IPO. The stock popped to its 52-week high of $47.07 on New Year's Eve 2013 after debuting on November 1, 2013 at $35.00.
In May 2014, Container Store put in a double bottom near $25. However, if Tuesday's earnings don't live up to Wall Street's demands, then support at $25 could be the last hope before a free fall, perhaps back to the IPO price of $18?
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The specialty retailer has struggled to please investors with it quarterly results in its limited public life. Earnings disappointed Wall Street both times as in the day surrounding results shares fell -4.68% and -9.24%, from the most recent. That's not the best way to start a public life.
Since the fourth quarter includes Christmas, it is not fair to make quarter-over-quarter comparisons to get a sense of what might be coming for the Container Store. Instead, we'll look back to the third quarter of 2013 with Google Trends' search volume intensity (SVI) to see if TCS can make the third time the charm.
For Q3 2013, the home organization supplies company reported sales of $188,298,000. According to SVI, web queries for the keyword "The Container Store" were 7.4% lower in Q1 2014 versus Q3 2013.
If Google Trends translate, and normally they do with some wiggle room for error, then first quarter revenue should come in close to $174.4 million, which is ever so slightly above the street's outlook.
So far, sales have fallen short of expectations for the pair of earnings announcements. A bullish top-line surprise would be something new for investors to consider, digest and react to; hopefully with buy tickets, at least for current shareholder.
Overall: The iEstimate and SVI suggest the possibility of a small, bullish earnings and sales surprise from Container Store Group Inc. (NYSE:TCS), which could propel shares higher. If not, then watch $25 closely, if support there breaks, TIMBER, watch out below.
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