Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

Our 80,000 qualified print subscribers—and 130,000 12-month engaged online audience—trust us to dive in and provide original journalism you won’t find elsewhere covering key emerging areas such as laser-driven inertial confinement fusion, lasers in space, integrated photonics, chipscale lasers, LiDAR, metasurfaces, high-energy laser weaponry, photonic crystals, and quantum computing/sensors/communications. We cover the innovations driving these markets.

Laser Focus World is part of Endeavor Business Media, a division of EndeavorB2B.

Laser Focus World Membership

Never miss any articles, videos, podcasts, or webinars by signing up for membership access to Laser Focus World online. You can manage your preferences all in one place—and provide our editorial team with your valued feedback.

Magazine Subscription

Can you subscribe to receive our print issue for free? Yes, you sure can!

Newsletter Subscription

Laser Focus World newsletter subscription is free to qualified professionals:

The Daily Beam

Showcases the newest content from Laser Focus World, including photonics- and optics-based applications, components, research, and trends. (Daily)

Product Watch

The latest in products within the photonics industry. (9x per year)

Bio & Life Sciences Product Watch

The latest in products within the biophotonics industry. (4x per year)

Laser Processing Product Watch

The latest in products within the laser processing industry. (3x per year)

Get Published!

If you’d like to write an article for us, reach out with a short pitch to Sally Cole Johnson: [email protected]. We love to hear from you.

Photonics Hot List

Laser Focus World produces a video newscast that gives a peek into what’s happening in the world of photonics.

Following the Photons: A Photonics Podcast

Following the Photons: A Photonics Podcast dives deep into the fascinating world of photonics. Our weekly episodes feature interviews and discussions with industry and research experts, providing valuable perspectives on the issues, technologies, and trends shaping the photonics community.

Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

Is Ollies Bargain Outlet a Smart Buy-On Post-Release Weakness?

Ollie's Bargain Outlet stock

Strength in Ollie’s Bargain Outlet (NASDAQ: OLLI) results, including market-leading growth and broader margins, suggests this stock is a buy on post-release weakness. Nothing in the report was bad, but strength was expected, so a sell-the-news event caused a marginal reduction in the price. The stock will likely trend higher because the company outperforms the retail industry, raising its guidance and long-term store count target. How high it gets depends on the upcoming results, but details suggest this stock could more than double over the coming years. 

Ollie’s Leads Retailers in Q4: Guides Higher 

Ollie’s had a robust quarter with top-line growth of 18%. The growth is impacted by an extra week in the quarter, but even at the adjusted rate, growth outperformed the retail sector by more than double. Ollie’s adjusted revenue and earnings growth also led off-price retail, including industry-leader TJX Companies (NYSE: TJX)

The problem with share prices today is that the 18% growth was expected and provided no catalyst for the market. Growth is driven by a 3.9% increase in comp store sales compounded by new store growth. The company added seven stores in the quarter for net growth of 9% YOY. Ollie’s now operates in thirty states and still has a solid growth trajectory ahead. 

Margin news is among the most compelling news in the report. The company widened its gross and operating margins to drive solid cash flows and accelerated earnings growth. Margin strength is due primarily to reduced shrinkage and supply costs offset by slightly higher operating expenses. 

The salient detail is that the operating margin improved by 270 basis points to leave the adjusted EPS up 45% at $1.23, $0.07 better than the consensus reported by Marketbeat. Adjusting for the extra week, earnings are up about 35% YOY and are $0.03 ahead of consensus.

The guidance provides a double catalyst for Ollie’s investors because 2025 will be strong, and the long-term outlook improved by 23%. The guidance for F2025 has revenue and earnings well above the consensus estimates and may be cautious, given the outlook for store count growth. The company plans to add forty-eight new stores, or another 9.4% and lifted the long-term store count target by 250. The latest target is the result of new data that shows that migration to suburban areas continues, growing the addressable market for Ollie’s Bargain Outlet. 

Ollie’s Bargain Outlet Is a Sound Investment

Ollie’s cash flow and balance sheet make it a sound investment. The cash flow allows the company to internally fund growth without leaning on debt. There is some debt on the balance sheet, but leverage is nearly non-existent, leaving the company in a robust position. Highlights at the end of 2024 include a 25% increase in cash, a 12% increase in total assets, and a 10% increase in shareholder equity. 

Share repurchases aided shareholder value, which reduced the count by 0.7% YOY. The company has $85.6 million left under the current authorization, about 1.8% of the market cap with shares near $75, and can be expected to increase the amount when it runs out. 

Ollie’s Uptrend Is Intact, But Market Struggles With Traction

The uptrend in Ollie’s share price is intact, but the post-release action shows that the market is struggling with traction. Solid support at the 150-day EMA faces stiff resistance at the 30-day EMA, with risk favoring the long-term investor. Assuming support near $75 remains solid, this stock should rebound soon and may set a new high by summer. If not, shares of Ollie’s may retreat to more attractive levels. In that scenario, the best targets for solid support are $72.50 and $70. 

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms Of Service.