Discount retail company Ollie’s Bargain Outlet (NASDAQ: OLLI) will be reporting results this Wednesday morning. Here’s what to look for.
Ollie's missed analysts’ revenue expectations last quarter, reporting revenues of $779.3 million, up 16.8% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ gross margin estimates but full-year EPS guidance missing analysts’ expectations.
Is Ollie's a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Ollie’s revenue to grow 15% year on year, improving from the 13.4% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Ollie's has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Ollie’s peers in the discount retailer segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Ross Stores delivered year-on-year revenue growth of 20.6%, beating analysts’ expectations by 6.6%, and Burlington reported revenues up 14.1%, topping estimates by 2.7%. Ross Stores traded up 8.1% following the results while Burlington’s stock price was unchanged.
Read our full analysis of Ross Stores’s results here and Burlington’s results here.
There has been positive sentiment among investors in the discount retailer segment, with share prices up 2.6% on average over the last month. Ollie's is down 2% during the same time and is heading into earnings with an average analyst price target of $131.53 (compared to the current share price of $80.83).
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