Ross Stores (ROST) To Report Earnings Tomorrow: Here Is What To Expect

Off-price retail company Ross Stores (NASDAQ:ROST) will be reporting earnings tomorrow afternoon. Here's what to expect.

Ross Stores beat analysts' revenue expectations by 3.6% last quarter, reporting revenues of $6.02 billion, up 15.5% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' revenue estimates and optimistic earnings guidance for the next quarter.

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

This quarter, analysts are expecting Ross Stores's revenue to grow 7.4% year on year to $4.83 billion, improving from the 3.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.35 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Ross Stores has missed Wall Street's revenue estimates twice over the last two years.

Looking at Ross Stores'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. Macy's revenues decreased 3.3% year on year, beating analysts' expectations by 3.9%, and Dillard's reported a revenue decline of 2.5%, topping estimates by 1.5%. Dillard's traded down 3.8% following the results.

Read our full analysis of Macy's results here and Dillard's results here.

There has been positive sentiment among investors in the general merchandise retail segment, with share prices up 5.2% on average over the last month. Ross Stores's stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $159.7 (compared to the current share price of $133).

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