Ross Stores, Inc.

Ross Stores, Inc. (ROST - Snapshot Report) is surging on solid fourth-quarter results, a share repurchase program and higher guidance.

Company Description

Ross Stores, Inc., with its subsidiaries, operates two chains of off-price retail apparel and home accessories in the Untied States. The company operates almost 1,000 stores and has a market cap of $4.9 billion.

Ross continues to be one of the few shining stars in the retail sector, posting solid fourth-quarter results on March 19 that have lifted the company's share price.

Fourth-Quarter Results

Revenue for the period was up 5% from last year to $1.73 billion. Income came in at $97.4 million, up from $94.5 million last year, producing earnings of 76 cents per share, in line with the consensus estimate.

This was was the fourth time in the last four quarters that the company has either beat or surprised on earnings, having done so by an average of 2 cents, or 3%.

Share Repurchasing

During the earnings release, Ross noted that it had repurchased 9.3 million shares of common stock in 2008 for $300 million, and plans to purchase another $300 million in 2009.

March Sales Up, Guidance Raised

On April 9, Ross reported strong March sales figures, up 3%, far ahead of analysts projections of a decline of 3.9%. Ross also went ahead and raised its full-year guidance, saying it now expects to earn between 68 and 70 cents per share, up from the previous 56 to 61 cents.

The Chart

The optimism surrounding the company has swept into its stock price, with shares recently surging back to within striking distance of the all-time high just above $41. Take a look at the chart below.