Ross Stores, Inc. (NASDAQ:ROST) shares are trading higher Wednesday after the company reported better-than-expected fourth-quarter financial results and issued first-quarter GAAP earnings per share guidance with its midpoint above estimates on Tuesday after the market closed.
Q4 Results Top Estimates
Ross reported earnings per share of $2.00, beating the consensus estimate of $1.89. Revenue totaled $6.63 billion, beating the consensus estimate of $6.41 billion and increasing 12% year-over- year from $5.9 billion in the prior-year quarter.
Comparable store sales rose 9% during the period on top of a 3% increase last year.
CEO Jim Conroy said business momentum accelerated during the quarter, citing strong holiday performance, improved merchandise assortments and new marketing campaigns that helped drive customer engagement.
Looking ahead, Ross sees first-quarter GAAP earnings per share of $1.60 to $1.67, versus the consensus estimate of $1.62. Furthermore, Ross sees fiscal-year GAAP earnings per share of $7.02 to $7.36, versus the consensus estimate of $7.17.
Consensus Ratings And Analyst Changes
Ross has a consensus price target of $191.78 and a consensus rating of Buy. Recent analyst action include:
- Guggenheim analyst Simeon Siegel maintained a Buy rating on Ross and raised the price target from $199 to $226.
- Telsey Advisory Group analyst Dana Telsey upgraded Ross Stores from a Market Perform rating to an Outperform rating and raised the price target from $220 to $240.
Ross Shares Climb
ROST Price Action: At the time of publication, Ross shares are trading 6.56% higher at $210.60, according to data from Benzinga Pro.
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