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Factors Setting the Tone for Five Below's (FIVE) Q3 Earnings
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Five Below, Inc. (FIVE - Free Report) is slated to report third-quarter fiscal 2017 results on Nov 30. Last quarter, the company outpaced the Zacks Consensus Estimate by 15.4%. Notably, it has surpassed earnings estimates in the trailing four quarters with an average beat of 8.7%. Let’s see, how things are shaping up prior to this announcement.
What to Expect?
Well the obvious question that comes to mind is whether Five Below will be able to continue its positive earnings surprise streak in the quarter to be reported. The company has a remarkable history, at least in terms of the bottom line. It persisted with positive earnings surprise streak for the eighth straight quarter, when it reported second-quarter fiscal 2017 results.
The current Zacks Consensus Estimate for the quarter under review is 13 cents, compared with a year-ago earnings of 10 cents. Analysts polled by Zacks anticipate revenues of $244.9 million, up nearly 23% year over year.
Factors Influencing this Quarter
We believe that the company’s bottom-line growth in the quarter to be reported is likely to be driven by comparable sales, enhanced margins and effective execution of the strategic initiatives. Five Below remains committed toward expanding store base, as well as enhancing in-store experience to draw traffic and enhance customer base. In fact, the company’s solid store remodeling is a major reason behind robust comps performance. After reporting solid comps, in the first and second quarter of fiscal 2017, the company had raised full-year comps view, anticipating it to grow 3.5-4.5%, compared with 3-4%, guided earlier.
Enhancing margins is one of Five Below’s key growth strategies. The company remains focused on achieving margin expansion through efficient cost structure, solid average net sales per store, supply-chain initiatives and focus on attaining economies of scale. Further, the company estimates third-quarter and fiscal 2017 operating margins to grow modestly year over year.
However, stiff competition from both brick-&-mortar and e-retailers remains a concern. Five Below’s seasonal nature of business also seems to be a hurdle.
Five Below, Inc. Price, Consensus and EPS Surprise
Our proven model does not conclusively show that Five Below is likely to beat earnings estimates this quarter. A stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Five Below has an Earnings ESP of -0.57%. Although, the company’s Zacks Rank #3 increases the predictive power of ESP, we need to have a positive ESP to be confident about an earnings surprise.
Stocks with Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
American Eagle Outfitters, Inc. (AEO - Free Report) has an Earnings ESP of +1.04% and a Zacks Rank #2.
G-III Apparel Group, Ltd. (GIII - Free Report) has an Earnings ESP of +1.44% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Factors Setting the Tone for Five Below's (FIVE) Q3 Earnings
Five Below, Inc. (FIVE - Free Report) is slated to report third-quarter fiscal 2017 results on Nov 30. Last quarter, the company outpaced the Zacks Consensus Estimate by 15.4%. Notably, it has surpassed earnings estimates in the trailing four quarters with an average beat of 8.7%. Let’s see, how things are shaping up prior to this announcement.
What to Expect?
Well the obvious question that comes to mind is whether Five Below will be able to continue its positive earnings surprise streak in the quarter to be reported. The company has a remarkable history, at least in terms of the bottom line. It persisted with positive earnings surprise streak for the eighth straight quarter, when it reported second-quarter fiscal 2017 results.
The current Zacks Consensus Estimate for the quarter under review is 13 cents, compared with a year-ago earnings of 10 cents. Analysts polled by Zacks anticipate revenues of $244.9 million, up nearly 23% year over year.
Factors Influencing this Quarter
We believe that the company’s bottom-line growth in the quarter to be reported is likely to be driven by comparable sales, enhanced margins and effective execution of the strategic initiatives. Five Below remains committed toward expanding store base, as well as enhancing in-store experience to draw traffic and enhance customer base. In fact, the company’s solid store remodeling is a major reason behind robust comps performance. After reporting solid comps, in the first and second quarter of fiscal 2017, the company had raised full-year comps view, anticipating it to grow 3.5-4.5%, compared with 3-4%, guided earlier.
Enhancing margins is one of Five Below’s key growth strategies. The company remains focused on achieving margin expansion through efficient cost structure, solid average net sales per store, supply-chain initiatives and focus on attaining economies of scale. Further, the company estimates third-quarter and fiscal 2017 operating margins to grow modestly year over year.
However, stiff competition from both brick-&-mortar and e-retailers remains a concern. Five Below’s seasonal nature of business also seems to be a hurdle.
Five Below, Inc. Price, Consensus and EPS Surprise
Five Below, Inc. Price, Consensus and EPS Surprise | Five Below, Inc. Quote
What Does the Zacks Model Unveil?
Our proven model does not conclusively show that Five Below is likely to beat earnings estimates this quarter. A stock needs to have both a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP for this to happen. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Five Below has an Earnings ESP of -0.57%. Although, the company’s Zacks Rank #3 increases the predictive power of ESP, we need to have a positive ESP to be confident about an earnings surprise.
Stocks with Favorable Combination
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Zumiez Inc. (ZUMZ - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters, Inc. (AEO - Free Report) has an Earnings ESP of +1.04% and a Zacks Rank #2.
G-III Apparel Group, Ltd. (GIII - Free Report) has an Earnings ESP of +1.44% and a Zacks Rank #3.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>