Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What's happening: Shares of Five Below Inc. (NASDAQ:FIVE) were up 10% as of 12:30 p.m. Thursday after the discount retailer posted better than expected fourth-quarter results.
Quarterly net revenue rose 24.4% year over year to $263.8 million, helped by a 20% increase in Five Below's store base and a 3.2% jump in comparable-store sales. Adjusted net income came in at $33.8 million, or a 29.8% increase to $0.61 per diluted share. Analysts, on average, were only expecting adjusted earnings of $0.60 per share on sales of $262.2 million.
Why it's happening: Keep in mind back in January, Five Below stock plunged after the company not only announced underwhelming results following its crucial holiday season, but also revised guidance downward for its full fourth quarter. Yesterday's official numbers came in slightly ahead of that guidance. As it stands, that's why it is unsurprising the stock is recouping some of its earlier losses despite Five Below's light outlook.