Five Below Turns in Earnings Report, Surges Ahead

Five Below Turns in Earnings Report, Surges Ahead

Five Below (NASDAQ:FIVE) brought out its earnings report late yesterday, and the discount retailer delivered beats for both earnings and revenue, enough to give the company an extra 5.7% in premarket trading. It's held on to at least some of those gains going into this morning's trading as well, though some profit-taking seemed to be going on. Wildly-surging comparable-store sales gave the company all the fuel it needed to post tremendous gains, and the latest word out of financial analysts is overwhelmingly bullish.

Five Below's Earnings Report Tramples Expectations

By the numbers, Five Below turned in a winning quarter with its earnings report. The company brought in earnings of $0.88 per share, against a consensus estimate of $0.65. That may not seem like much, but against last year it's a win of staggering scope; reports note that earnings per share is up 196.7% against this time last year.

The company also turned in a beat for revenue, as it brought in around $597.823 million against an expected $551.14 million. A respectable win in isolation, and even better when compared against last year's earnings; this year's revenue figures are up 197.57% against last year.

Five Below even delivered excitement with its forecasts; the company expects to bring in earnings per share between $1.01 and $1.13 for the quarter and looks for revenue to come in between $640 million and $660 million.

The biggest winner for Five Below was unquestionably comparable-store sales. Reports noted that those sales are up 162% against this time last year. The company's CEO, Joel D. Anderson, noted that the company had already been engaging in expansion and was slated to continue doing so into this year. Five Below opened 67 new stores net, and now has 1,087 stores in 39 states. The company plans to open a combined total of between 170 and 180 stores this year, and has been working to improve its supply chain to hopefully head off issues of shortages that have been emerging of late.

What Are Financial Analysts Saying About FIVE Stock?

Unquestionably, financial analysts—based on our latest research—are calling Five Below stock a “buy”. The consensus buy, reports note, has held steady for the last two years and beyond. Though there are signs of bearishness slipping in, those wondering “is Five Below a good stock to buy?” can take some comfort in noting analysts believe that's the case.

A year ago, the company had 15 “buy” ratings and three “hold” ratings to its credit. Six months ago, that shifted to 16 “buy” ratings and five “hold”. Today, we're at 15 “buy” ratings and six “hold”; while the “hold” side is increasing in scale, “buy” interest has pretty much plateaued. Though with the ratio of “buy” to “hold” still running at five to two, it's still clear the financial analyst field is calling for a buy.

Meanwhile, the FIVE price target occupies a fairly broad range. The current consensus is $198.50 per share, with a high of $260 and a low of $116. With Five Below stock currently selling at $183.79 per share, there is still quite a bit of upside potential to the stock.

Recent analyst activity for Five Below stock, meanwhile, has been overwhelmingly positive. Just today, both Telsey Advisory Group and Royal Bank of Canada boosted their price targets on Five Below shares, with Telsey going from $230 to $240, and Royal Bank of Canada going from $225 to $234. Before that, back in late April, Jefferies Financial Group established that high price target with a hike on April 27, going from $250 to $260. March, however, was a huge month for Five Below shares, with six out of seven analysts upgrading their price targets on the company that month.

Companies in This Article:

CompanyCurrent PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Five Below (FIVE)$199.99flatN/A50.38Buy$213.16