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Five Below (FIVE) Lined Up for Q2 Earnings: What's in Store?
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Five Below, Inc. (FIVE - Free Report) is likely to register an increase in the top line when it reports second-quarter fiscal 2023 results on Aug 30 after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $760.2 million, suggesting an improvement of 13.6% from the prior-year reported figure.
Over the past 30 days, the Zacks Consensus Estimate for second-quarter earnings per share has been stable at 83 cents. The figure implies an increase of 12.2% from the prior-year quarter.
This extreme-value retailer for tweens, teens and beyond has a trailing four-quarter earnings surprise of 27.9%, on average. In the last reported quarter, the company’s bottom line beat the Zacks Consensus Estimate by a margin of 8.1%.
Factors to Consider
Five Below's emphasis on offering current and in-demand products, enhancing supply-chain efficiency, bolstering digital infrastructure and expanding physical store presence positions it for success. Known for its diverse product portfolio, Five Below comfortably adapts to evolving consumer preferences. These attributes, coupled with the pricing strategy, enable it to cater to demographic shoppers and resonate with value-seeking customers.
We believe the higher penetration of Five Beyond and the e-commerce business, new customer acquisitions, the sales lift from remodels and conversions and selective merchandise price increases to counter inflation are likely to have favorably impacted the company’s sales. We expect second-quarter comparable sales to come in at 2.3%.
Five Below, Inc. Price, Consensus and EPS Surprise
Five Below had earlier guided second-quarter fiscal 2023 net sales in the band of $755 million-$765 million, with comparable sales anticipated to increase in the range of 2-3%. Management had earlier guided second-quarter earnings between 80 cents and 85 cents per share.
Despite the aforementioned tailwinds, margins remain an area to watch. Any deleverage in SG&A expenses due to marketing expenses and incentive compensations may have a direct bearing on margins. We foresee a 70-basis point deleverage in the second-quarter operating margin.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Five Below this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Five Below has an Earnings ESP of +1.21% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 More Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +8.52% and a Zacks Rank #2. The company is likely to register a bottom-line increase when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 15 cents suggests a sharp increase from 4 cents reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.19 billion, which indicates a marginal decline of 0.9% from the figure reported in the prior-year quarter. American Eagle Outfitters has a trailing four-quarter earnings surprise of 9.2%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.03% and carries a Zacks Rank #3. The company is likely to register a bottom-line decrease when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.39 suggests a drop of 17.1% from the year-ago quarter.
Casey's General Stores’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.85 billion, which indicates a drop of 13.5% from the figure reported in the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.99% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.72 suggests a rise of 12.4% from the year-ago reported number.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $78.86 billion, which calls for an increase of 9.4% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 1.8%, on average.
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Five Below (FIVE) Lined Up for Q2 Earnings: What's in Store?
Five Below, Inc. (FIVE - Free Report) is likely to register an increase in the top line when it reports second-quarter fiscal 2023 results on Aug 30 after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $760.2 million, suggesting an improvement of 13.6% from the prior-year reported figure.
Over the past 30 days, the Zacks Consensus Estimate for second-quarter earnings per share has been stable at 83 cents. The figure implies an increase of 12.2% from the prior-year quarter.
This extreme-value retailer for tweens, teens and beyond has a trailing four-quarter earnings surprise of 27.9%, on average. In the last reported quarter, the company’s bottom line beat the Zacks Consensus Estimate by a margin of 8.1%.
Factors to Consider
Five Below's emphasis on offering current and in-demand products, enhancing supply-chain efficiency, bolstering digital infrastructure and expanding physical store presence positions it for success. Known for its diverse product portfolio, Five Below comfortably adapts to evolving consumer preferences. These attributes, coupled with the pricing strategy, enable it to cater to demographic shoppers and resonate with value-seeking customers.
We believe the higher penetration of Five Beyond and the e-commerce business, new customer acquisitions, the sales lift from remodels and conversions and selective merchandise price increases to counter inflation are likely to have favorably impacted the company’s sales. We expect second-quarter comparable sales to come in at 2.3%.
Five Below, Inc. Price, Consensus and EPS Surprise
Five Below, Inc. price-consensus-eps-surprise-chart | Five Below, Inc. Quote
Five Below had earlier guided second-quarter fiscal 2023 net sales in the band of $755 million-$765 million, with comparable sales anticipated to increase in the range of 2-3%. Management had earlier guided second-quarter earnings between 80 cents and 85 cents per share.
Despite the aforementioned tailwinds, margins remain an area to watch. Any deleverage in SG&A expenses due to marketing expenses and incentive compensations may have a direct bearing on margins. We foresee a 70-basis point deleverage in the second-quarter operating margin.
What the Zacks Model Unveils
Our proven model predicts an earnings beat for Five Below this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Five Below has an Earnings ESP of +1.21% and a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 More Stocks With the Favorable Combination
Here are three other companies you may want to consider as our model shows that these too have the right combination of elements to post an earnings beat:
American Eagle Outfitters (AEO - Free Report) currently has an Earnings ESP of +8.52% and a Zacks Rank #2. The company is likely to register a bottom-line increase when it reports second-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of 15 cents suggests a sharp increase from 4 cents reported in the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
American Eagle Outfitters’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.19 billion, which indicates a marginal decline of 0.9% from the figure reported in the prior-year quarter. American Eagle Outfitters has a trailing four-quarter earnings surprise of 9.2%, on average.
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +1.03% and carries a Zacks Rank #3. The company is likely to register a bottom-line decrease when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.39 suggests a drop of 17.1% from the year-ago quarter.
Casey's General Stores’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $3.85 billion, which indicates a drop of 13.5% from the figure reported in the prior-year quarter. CASY has a trailing four-quarter earnings surprise of 7.5%, on average.
Costco (COST - Free Report) currently has an Earnings ESP of +0.99% and a Zacks Rank of 3. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $4.72 suggests a rise of 12.4% from the year-ago reported number.
Costco’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $78.86 billion, which calls for an increase of 9.4% from the prior-year quarter. COST has a trailing four-quarter earnings surprise of 1.8%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.