Container Store Shares Jump 11% On Strong Q4 Results

(RTTNews) - Shares of Container Store Group Inc. (TCS) jumped 11% on Wednesday's extended trading hours after the company's fourth-quarter earnings and revenues trumped Wall Street estimates.

Coppell, Texas based Container Store reported fourth-quarter profit of $15.9 million or $0.33, compared to last year's loss of $0.4 million or $0.01 per share.

Adjusted earnings for the quarter rose to $0.33 per share from $0.18 per share last year. Analysts polled by Thomson Reuters estimated earnings of $0.30 per share for the quarter.

Sales for the quarter grew 8.8% to $253.2 million from $232.8 million last year. Analysts had a consensus revenue estimate of $244.4 million.

Container Store retail business rose 10.1% to $235.7 million, while Elfa International third-party dropped 6.4% to $17.5 million.

Comparable store sales increased 8.5%, with Custom Closets up 7.4%, contributing 380 basis points of the increase to comparable store sales.

"We ended fiscal 2018 with strong results, posting an 8.5% comparable store sales increase in Q4 that was broad-based across our core Custom Closets business, as well as our other product categories," said Melissa Reiff, Chief Executive Officer.

Looking forward to the full year 2019, the company expects earnings of $0.41 to $0.51 per share and sales of $915 million to $925 million. Analysts currently estimate earnings of $0.45 per share on revenues of $909.47 million.

TCS closed Tuesday's trading at $8.52 on the NYSE. The stock gained $0.94 or 11.03% in the after-hours trade.