Stock Story -
Discount grocery store chain Grocery Outlet (NASDAQ:GO) will be reporting results tomorrow after market close. Here's what to expect.
Grocery Outlet beat analysts' revenue expectations by 1.4% last quarter, reporting revenues of $1.04 billion, up 7.4% year on year. It was a weak quarter for the company, with underwhelming earnings guidance for the full year and a miss of analysts' gross margin estimates.
Is Grocery Outlet a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Grocery Outlet's revenue to grow 9.1% year on year to $1.10 billion, slowing from the 12.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Grocery Outlet has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.3% on average.
Looking at Grocery Outlet's peers in the non-discretionary retail segment, only Sprouts has reported results so far. It beat analysts' revenue estimates by 3.2%, delivering year-on-year sales growth of 11.9%. The stock traded up 13.2% on the results.
Read the full analysis of Sprouts's results on StockStory. Investors in the non-discretionary retail segment have had fairly steady hands going into earnings, with share prices down 1.7% on average over the last month. Grocery Outlet is down 10.6% during the same time and is heading into earnings with an average analyst price target of $25.2 (compared to the current share price of $19.4).
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