Off-price retail company Ross Stores (NASDAQ: ROST) will be reporting results tomorrow after the bell. Here’s what you need to know.
Ross Stores beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $5.29 billion, up 7.1% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and a decent beat of analysts’ EPS estimates.
Is Ross Stores a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Ross Stores’s revenue to grow 4.5% year on year to $5.15 billion, slowing from the 7.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.40 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. Ross Stores has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 2.1% on average.
Looking at Ross Stores’s peers in the general merchandise retail segment, only Dillard's has reported results so far. It beat analysts’ revenue estimates by 1.2%, posting year-on-year sales declines of 3.5%. The stock traded up 9.9% on the results.
Read our full analysis of Dillard’s earnings results here.Investors in the general merchandise retail segment have had steady hands going into earnings, with share prices flat over the last month. Ross Stores is down 3.7% during the same time and is heading into earnings with an average analyst price target of $167.67 (compared to the current share price of $140.42).
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