Tuesday Morning Earnings Preview

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Tuesday Morning (NAS: TUES) came in right in line with the Street's expectations last quarter, but investors are hoping that it will beat them this quarter. The company will unveil its latest earnings on Monday, Jan. 23. Tuesday Morning is a closeout retailer of upscale home furnishings, housewares, gifts, and related items in the United States.

What analysts say:

  • Buy, sell, or hold?: Analysts don't like Tuesday Morning as much as competitor Gordman Stores overall. Four out of five analysts rate Gordman Stores a buy compared to zero out of one for Tuesday Morning. That rating hasn't budged in three months as analysts have remained steady in their opinion of the stock.
  • Revenue forecasts: On average, analysts predict $273.1 million in revenue this quarter. That would represent a decline of 2.2% from the year-ago quarter.
  • Wall Street earnings expectations: The average analyst estimate is earnings of $0.36 per share.

What our community says:
CAPS All-Stars are solidly backing the stock, with 82.2% granting it an outperform rating. The community at large concurs with the All-Stars, with 85.4% giving it a rating of outperform. Fools have embraced Tuesday Morning and haven't been shy with their opinions lately, logging 156 posts in the past 30 days. Tuesday Morning's bearish CAPS rating of two out of five stars falls short of the Fool community sentiment.

Management:
Revenue has fallen in the past two quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows gross, operating, and net margins over the past four quarters. 
 

QuarterQ1Q4Q3Q2
Gross Margin38.1%37.3%38.3%38.4%
Operating Margin(0.5%)(0.8%)(0.3%)10.2%
Net Margin(3.3%)(0.7%)(2.1%)6.2%

For all our Tuesday Morning-specific analysis, including earnings and beyond, add Tuesday Morning to My Watchlist.

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Earnings estimates provided by Zacks.

At the time this article was published

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