The 10-second takeaway
For the quarter ended Oct. 27 (Q3), Ross Stores met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew and GAAP earnings per share grew.
Gross margins contracted, operating margins grew, net margins grew.
Ross Stores recorded revenue of $2.26 billion. The 20 analysts polled by S&P Capital IQ expected to see a top line of $2.26 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $2.05 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 $0.72. The 28 earnings estimates compiled by S&P Capital IQ forecast $0.72 per share. GAAP EPS of $0.72 for Q3 were 14% higher than the prior-year quarter's $0.63 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 27.1%, 10 basis points worse than the prior-year quarter. Operating margin was 11.3%, 40 basis points better than the prior-year quarter. Net margin was 7.1%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.71 billion. On the bottom line, the average EPS estimate is $1.05.
Next year's average estimate for revenue is $9.67 billion. The average EPS estimate is $3.50.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 367 members out of 401 rating the stock outperform, and 34 members rating it underperform. Among 106 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 100 give Ross Stores a green thumbs-up, and six 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 $72.45.
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