Five Below Jumps on Solid Guidance
Five Below reported its fiscal third-quarter financial results and guidance after the markets closed on Thursday.
When Five Below Inc. (NASDAQ: FIVE) reported its fiscal third-quarter financial results after the markets closed on Thursday, it posted $0.10 in earnings per share (EPS) and $199.5 million in revenue. The consensus estimates from Thomson Reuters had called for $0.10 in EPS and revenue of $201.03 million. The same period of last year reportedly had EPS of $0.08 and $169.69 million in revenue.
Looking ahead, the fiscal fourth-quarter net sales are expected to be in the range of $391 million to $397 million, assuming a 2% to 3% increase in comparable sales. Net income is expected to be in the range of $49.2 million to $50.6 million, with a diluted income per common share range of $0.89 to $0.92.
The consensus estimates are $0.91 in EPS and $393.65 million in revenue for the fiscal fourth-quarter.
Management believes the Five Below is well-positioned to wow its customers with a compelling holiday assortment, accompanied by exciting marketing plans, including a new and expanded TV campaign.
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Excluding Friday’s move, Five Below has underperformed the broad markets, with the stock down 24%.
Joel Anderson, CEO of Five Below, commented:
We are pleased to have delivered earnings at the high-end of our guidance range in our fiscal third quarter. Our track record of outstanding new store performance continued and, despite being up against a strong third quarter last year, we delivered solid sales growth, expanded operating margins and increased EPS by 25% for the quarter.
Shares of Five Below closed Thursday up 1.3% at $39.88, with a consensus analyst price target of $49.07 and a 52-week trading range of $27.87 to $52.70. The stock was up 11% at $44.35 in early trading indications Friday.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
