What To Expect From Ross Stores’s (ROST) Q2 Earnings

Off-price retail company Ross Stores (NASDAQ:ROST) will be reporting earnings tomorrow after market hours. Here’s what you need to know.

Ross Stores met analysts’ revenue expectations last quarter, reporting revenues of $4.86 billion, up 8.1% year on year. It was a mixed quarter for the company, with a decent beat of analysts’ EPS estimates but underwhelming 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 6.3% year on year to $5.25 billion, slowing from the 7.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.49 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 only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.9% on average.

Looking at Ross Stores’s peers in the general merchandise retail segment, only Dillard's has reported results so far. It missed analysts’ revenue estimates by 1.1%, posting year-on-year sales declines of 5.2%. The stock was down 9.5% on the results.

Read our full analysis of Dillard’s earnings results here.

Investors in the general merchandise retail segment have had steady hands going into earnings, with share prices flat over the last month. Ross Stores is up 3.3% during the same time and is heading into earnings with an average analyst price target of $161.7 (compared to the current share price of $148.5).

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