Discount grocery store chain Grocery Outlet (NASDAQ: GO) will be reporting results this Tuesday after market hours. Here’s what investors should know.
Grocery Outlet missed analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $1.18 billion, up 4.5% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Grocery Outlet a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Grocery Outlet’s revenue to grow 6.3% year on year to $1.18 billion, slowing from the 10.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Grocery Outlet has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Grocery Outlet’s peers in the non-discretionary retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Sprouts delivered year-on-year revenue growth of 13.1%, missing analysts’ expectations by 1.1%, and Costco reported revenues up 8.1%, in line with consensus estimates. Sprouts traded down 26.4% following the results while Costco was also down 2.9%.
Read our full analysis of Sprouts’s results here and Costco’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the non-discretionary retail stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.9% on average over the last month. Grocery Outlet is down 15.3% during the same time and is heading into earnings with an average analyst price target of $17.15 (compared to the current share price of $13.65).
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