Tile Shop (TTS) CEO Homeister Discusses Weak 2016 Outlook on CNBC
NEW YORK (TheStreet) -- Although shares of Tile Shop (TTS) - Get Report are continuing to drop on Tuesday's weak 2016 full-year forecasts, CNBC's Brian Sullivan called the company the "little store that could" on "Power Lunch" this afternoon.
Before today's opening bell, Tile Shop reported 2016 second quarter earnings of 14 cents per share, slightly higher than analysts' expectations of 13 cents per share. The tile retailer posted that second quarter revenue rose 11% to $84.3 million.
However, Tile Shop stock has been sinking today because the company also reported it expects 2016 full-year earnings between 41 cents and 45 cents per share on revenue in the range of $322 million to $329 million. Wall Street estimated full-year earnings of 45 cents per share on revenue of $327.1 million.
"While we're certainly a bit disappointed in the reaction of the stock today, I'm managing the organization, along with the men and women that work at the Tile Shop, for long-term growth, long-term opportunity," Tile Shop CEO Chris Homeister told Sullivan.
Homeister is "proud" of the earnings beat and continues to see Tile Shop as "one of the great growth retailers in the U.S."
"We really want to stand for customer service. The individual things we're doing at the Tile Shop of having that customer at the center of everything we do is certainly a big driver of our success," Homeister noted.
Shares of Tile Shop are plunging by 9.37% to $17.90 late this afternoon.
Separately, TheStreet Ratings rated Tile Shop as a "buy" with a score of B-.
This is driven by a number of strengths, which can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. Although no company is perfect, currently TheStreet Ratings does not see any significant weaknesses which are likely to detract from the generally positive outlook.
You can view the full analysis from the report here: TTS
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.