The 10-second takeaway
For the quarter ended May 4 (Q1), Ross Stores met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded. GAAP earnings per share expanded significantly.
Margins grew across the board.
Ross Stores reported revenue of $2.54 billion. The 18 analysts polled by S&P Capital IQ wanted to see a top line of $2.53 billion on the same basis. GAAP reported sales were 7.8% higher than the prior-year quarter's $2.36 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 $1.07. The 27 earnings estimates compiled by S&P Capital IQ anticipated $1.07 per share. GAAP EPS of $1.07 for Q1 were 15% higher than the prior-year quarter's $0.93 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 29.2%, 40 basis points better than the prior-year quarter. Operating margin was 14.9%, 50 basis points better than the prior-year quarter. Net margin was 9.2%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.51 billion. On the bottom line, the average EPS estimate is $0.93.
Next year's average estimate for revenue is $10.33 billion. The average EPS estimate is $3.89.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 392 members out of 425 rating the stock outperform, and 33 members rating it underperform. Among 118 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 115 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 $66.95.
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.