What to Look for When Container Store Posts Q2 Earnings

The Container Store (TCS) is scheduled to report its 2016 fiscal second quarter results after Wednesday's closing bell.

Analysts surveyed by FactSet are looking for earnings of 6 cents per share on revenue of $207 million. Wall Street is expecting same-store sales to fall 3.5% during the most recent quarter.

During the same quarter a year ago, the specialty retailer of storage and organization products posted adjusted earnings of 6 cents per diluted share on revenue of $195.5 million. Same-store sales increased 0.1% last year.

Goldman Sachs, which has a "neutral" rating on shares, noted that there is a continuing choppy environment in home furnishings and that the company's new fiscal year now ends in March vs. February previously.

"We stand well below the company's full year guidance driven by our lower top line," the firm wrote in a recent note.

Goldman sees fiscal 2016 revenue of $809 million compared to the company's outlook for $830 million to $845 million. The firm also projects same-store sales will decline 3.3% vs. Container Store's full-year forecast for an increase of 0.5% to a decrease of 1.5%.

The shares were largely flat in mid-afternoon trading today. The stock is down nearly 42% year-to-date.

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