Ollie's (OLLI) Reports Earnings Tomorrow. What To Expect

Discount retail company Ollie’s Bargain Outlet (NASDAQ:OLLI) will be announcing earnings results tomorrow before market open. Here's what you need to know.

Last quarter Ollie's reported revenues of $514.5 million, up 13.7% year on year, beating analyst revenue expectations by 3.1%. It was a strong quarter for the company, with revenue and EPS exceeding Wall Street's expectations. The company also broadly raised its full year outlook for sales, profits, and EPS again after raising the outlook when reporting the previous quarter.

Is Ollie's buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Ollie's's revenue to grow 12.2% year on year to $469.3 million, improving on the 9% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.45 per share.

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing five upwards revisions over the last thirty days.The company missed Wall St's revenue estimates five times over the last two years.

Looking at Ollie's's peers in the general merchandise retail segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. Big Lots's revenues decreased 14.7% year on year, missing analyst estimates by 0.4% and Five Below reported revenues up 14.2% year on year, exceeding estimates by 1.1%. Big Lots traded up 4.2% on the results, and Five Below was flat on the results.

Read our full analysis of Big Lots's results here and Five Below's results here.

There has been positive sentiment among investors in the general merchandise retail segment, with the stocks up on average 13.4% over the last month. Ollie's is down 4.8% during the same time, and is heading into the earnings with analyst price target of $84.1, compared to share price of $76.4.

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The author has no position in any of the stocks mentioned.