Discount retailer Five Below (NASDAQ: FIVE) will be reporting earnings this Wednesday after the bell. Here’s what investors should know.
Five Below beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $970.5 million, up 19.5% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ EBITDA estimates but full-year EPS guidance missing analysts’ expectations significantly.
Is Five Below a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Five Below’s revenue to grow 19.5% year on year to $991.8 million, improving from the 9.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.62 per share.
Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 17 upward revisions over the last 30 days (we track 17 analysts). Five Below has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Five Below’s peers in the general merchandise retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Ross Stores delivered year-on-year revenue growth of 4.6%, meeting analysts’ expectations, and TJX reported revenues up 6.9%, topping estimates by 1.7%. Ross Stores traded up 1.1% following the results while TJX was also up 2.1%.
Read our full analysis of Ross Stores’s results here and TJX’s results here.
There has been positive sentiment among investors in the general merchandise retail segment, with share prices up 2.5% on average over the last month. Five Below is down 1% during the same time and is heading into earnings with an average analyst price target of $140.47 (compared to the current share price of $141).
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