What To Expect From Burlington's (BURL) Q1 Earnings

Off-price retail company Burlington Stores (NYSE:BURL) will be announcing earnings results tomorrow morning. Here's what investors should know.

Burlington beat analysts' revenue expectations by 2.4% last quarter, reporting revenues of $3.13 billion, up 13.9% year on year. It was a solid quarter for the company, with optimistic earnings guidance for the full year.

Is Burlington a buy or sell going into earnings? Read our full analysis here, it's free.

This quarter, analysts are expecting Burlington's revenue to grow 9.7% year on year to $2.34 billion, slowing from the 10.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.05 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Burlington has missed Wall Street's revenue estimates five times over the last two years.

Looking at Burlington's peers in the general merchandise retail 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 8.1%, meeting analysts' expectations, and TJX reported revenues up 5.9%, in line with consensus estimates. Ross Stores traded up 7.8% following the results while TJX was also up 2.6%.

Read our full analysis of Ross Stores's results here and TJX's results here.

There has been positive sentiment among investors in the general merchandise retail segment, with share prices up 9.3% on average over the last month. Burlington is up 11.1% during the same time and is heading into earnings with an average analyst price target of $247.3 (compared to the current share price of $199.9).

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