$.42 NORMALIZED earnings (which is the midpoint of what they guided to) is after assuming taxes of 37.5%. So that's $.67 net income for the full year, before taxes.
They're at $.28, so if they get $.39 in Q4, it's $.67 for the full year. They won't pay taxes on it this year, but once you NORMALIZE (i.e. make it look like it would if they were actually paying taxes), it's $.42 per year.
Management credibility is DEFINATELY on the line here. If The Street laughs these guys off as incompetent then bombs away on the share price ... REGARDLESS of all those GLOWING Toys-R-Us / Amazon top seller rosters.
I dont get it either. Further they blame it on less shopping days beween Thanksgiving and Christmas. The last i checked the calendar hasnt changed since you put out the guidance so thats not really a reason.