Ross Stores (Nasdaq: ROST ) reported earnings on Aug. 16. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended July 28 (Q2), Ross Stores met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share improved significantly.
Margins expanded across the board.
Ross Stores reported revenue of $2.34 billion. The five analysts polled by S&P Capital IQ expected to see a top line of $2.32 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $2.09 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.81. The 21 earnings estimates compiled by S&P Capital IQ predicted $0.80 per share. GAAP EPS of $0.81 for Q2 were 27% higher than the prior-year quarter's $0.64 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 27.8%, 80 basis points better than the prior-year quarter. Operating margin was 12.8%, 110 basis points better than the prior-year quarter. Net margin was 7.8%, 70 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.23 billion. On the bottom line, the average EPS estimate is $0.69.
Next year's average estimate for revenue is $9.70 billion. The average EPS estimate is $3.50.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 359 members out of 392 rating the stock outperform, and 33 members rating it underperform. Among 103 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 99 give Ross Stores a green thumbs-up, and four give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Ross Stores is outperform, with an average price target of $67.50.
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