The 10-second takeaway
For the quarter ended Feb. 2 (Q4), Ross Stores met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share grew significantly.
Margins grew across the board.
Ross Stores chalked up revenue of $2.76 billion. The 20 analysts polled by S&P Capital IQ predicted revenue of $2.74 billion on the same basis. GAAP reported sales were 15% higher than the prior-year quarter's $2.40 billion.
EPS came in at $1.07. The 28 earnings estimates compiled by S&P Capital IQ predicted $1.07 per share. GAAP EPS of $1.07 for Q4 were 26% higher than the prior-year quarter's $0.85 per share.
For the quarter, gross margin was 27.8%, 60 basis points better than the prior-year quarter. Operating margin was 13.7%, 70 basis points better than the prior-year quarter. Net margin was 8.6%, 60 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.53 billion. On the bottom line, the average EPS estimate is $1.04.
Next year's average estimate for revenue is $10.29 billion. The average EPS estimate is $3.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 388 members out of 423 rating the stock outperform, and 35 members rating it underperform. Among 128 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 125 give Ross Stores a green thumbs-up, and three 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 $67.17.
Is Ross Stores the right retailer for your portfolio? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average retailing powerhouse. Click here for instant access to this free report.
- Add Ross Stores to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.