Off-price retail company Ross Stores (NASDAQ:ROST) will be reporting earnings this Thursday after the bell. Here’s what to expect.
Ross Stores beat analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $4.98 billion, up 2.6% year on year. It was a slower quarter for the company, with EPS guidance for next quarter missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations.
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 4.8% year on year to $5.54 billion, slowing from the 7.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.54 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Ross Stores has missed Wall Street’s revenue estimates three times over the last two years.
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 2.6%, delivering year-on-year sales growth of 1.4%. The stock traded up 3.6% on the results.
Read our full analysis of Dillard’s earnings results here.There has been positive sentiment among investors in the general merchandise retail segment, with share prices up 6.4% on average over the last month. Ross Stores is up 10.6% during the same time and is heading into earnings with an average analyst price target of $153.76 (compared to the current share price of $148.20).
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