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Five Below (FIVE) to Post Q2 Earnings: What's in the Cards?
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Five Below, Inc. (FIVE - Free Report) is likely to register an increase in the top line when it reports second-quarter fiscal 2022 results on Aug 31 after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $679.8 million, suggesting an improvement of 5.2% from the prior-year reported figure.
Meanwhile, the Zacks Consensus Estimate for second-quarter earnings per share has decreased by a penny to 78 cents over the past seven days. The figure indicates a decline of 32.2% from the prior-year quarter.
This extreme-value retailer for tweens, teens and beyond has a trailing four-quarter earnings surprise of 13.5%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 1.7%.
Factors to Note
Five Below’s second-quarter performance is likely to have benefited from its focus on providing trend-right products, strengthening digital capabilities and growing its brick-and-mortar footprint. We believe that the increased penetration of Five Beyond products and e-commerce business, new customer acquisitions, sales lifts from remodels and conversions and selective merchandise price increases might have contributed to the top line.
On its last earnings call, management guided second-quarter net sales in the range of $675 million- $695 million, up from the $646.6 million reported in the year-ago period.
However, Five Below might have encountered challenges related to the soaring inflation, softness in demand for consumer discretionary products and lapping a record-government stimulus year ago. As a result, the company projected second-quarter comparable sales to be down 2-5%.
We believe that the increased freight cost, higher wages and elevated marketing expenses are likely to have put pressure on margins, and, in turn, bottom line. Five Below guided 450 basis points of contraction in the operating margin for the second quarter, driven by deleverage in both the gross profit and SG&A expenses. It projected earnings between 74 cents and 86 cents a share for the quarter under discussion, down from the $1.15 reported in the year-ago period.
Five Below, Inc. Price, Consensus and EPS Surprise
Our proven model does not conclusively predict an earnings beat for Five Below this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Five Below has an Earnings ESP of -4.99% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +24.88% and a Zacks Rank #3. The company is expected to register a bottom-line increase when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for the quarterly earnings per share of $3.32 suggests an increase of 4.1% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casey's General’s top line is anticipated to have risen year over year. The consensus mark for CASY’s revenues is pegged at $4.6 billion, indicating an increase of 44.4% from the figure reported in the year-ago quarter. Casey's General has a trailing four-quarter earnings surprise of 5.8%, on average.
Dave & Buster's Entertainment (PLAY - Free Report) currently has an Earnings ESP of +2.97% and a Zacks Rank #3. The company is likely to register a decline in the bottom line when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.01 suggests a decline of 5.6% from the year-ago quarter.
Dave & Buster's Entertainment’s top line is expected to have increased year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $432.3 million, which indicates an increase of 14.5% from the figure reported in the prior-year quarter. PLAY has a trailing four-quarter earnings surprise of 41.1%, on average.
Campbell Soup Company (CPB - Free Report) currently has an Earnings ESP of +0.60% and a Zacks Rank #3. The company is expected to register an increase in the bottom line when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of 56 cents suggests an increase of 1.8% from the year-ago quarter.
Campbell Soup’s top line is anticipated to have increased year over year. The consensus mark for CPB’s revenues is pegged at $1.98 billion, indicating an increase of 5.5% from the figure reported in the year-ago quarter.
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Five Below (FIVE) to Post Q2 Earnings: What's in the Cards?
Five Below, Inc. (FIVE - Free Report) is likely to register an increase in the top line when it reports second-quarter fiscal 2022 results on Aug 31 after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $679.8 million, suggesting an improvement of 5.2% from the prior-year reported figure.
Meanwhile, the Zacks Consensus Estimate for second-quarter earnings per share has decreased by a penny to 78 cents over the past seven days. The figure indicates a decline of 32.2% from the prior-year quarter.
This extreme-value retailer for tweens, teens and beyond has a trailing four-quarter earnings surprise of 13.5%, on average. In the last reported quarter, the company’s bottom line surpassed the Zacks Consensus Estimate by a margin of 1.7%.
Factors to Note
Five Below’s second-quarter performance is likely to have benefited from its focus on providing trend-right products, strengthening digital capabilities and growing its brick-and-mortar footprint. We believe that the increased penetration of Five Beyond products and e-commerce business, new customer acquisitions, sales lifts from remodels and conversions and selective merchandise price increases might have contributed to the top line.
On its last earnings call, management guided second-quarter net sales in the range of $675 million- $695 million, up from the $646.6 million reported in the year-ago period.
However, Five Below might have encountered challenges related to the soaring inflation, softness in demand for consumer discretionary products and lapping a record-government stimulus year ago. As a result, the company projected second-quarter comparable sales to be down 2-5%.
We believe that the increased freight cost, higher wages and elevated marketing expenses are likely to have put pressure on margins, and, in turn, bottom line. Five Below guided 450 basis points of contraction in the operating margin for the second quarter, driven by deleverage in both the gross profit and SG&A expenses. It projected earnings between 74 cents and 86 cents a share for the quarter under discussion, down from the $1.15 reported in the year-ago period.
Five Below, Inc. Price, Consensus and EPS Surprise
Five Below, Inc. price-consensus-eps-surprise-chart | Five Below, Inc. Quote
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for Five Below this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Five Below has an Earnings ESP of -4.99% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With the Favorable Combination
Here are three companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Casey's General Stores (CASY - Free Report) currently has an Earnings ESP of +24.88% and a Zacks Rank #3. The company is expected to register a bottom-line increase when it reports first-quarter fiscal 2023 results. The Zacks Consensus Estimate for the quarterly earnings per share of $3.32 suggests an increase of 4.1% from the year-ago quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Casey's General’s top line is anticipated to have risen year over year. The consensus mark for CASY’s revenues is pegged at $4.6 billion, indicating an increase of 44.4% from the figure reported in the year-ago quarter. Casey's General has a trailing four-quarter earnings surprise of 5.8%, on average.
Dave & Buster's Entertainment (PLAY - Free Report) currently has an Earnings ESP of +2.97% and a Zacks Rank #3. The company is likely to register a decline in the bottom line when it reports second-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for the quarterly earnings per share of $1.01 suggests a decline of 5.6% from the year-ago quarter.
Dave & Buster's Entertainment’s top line is expected to have increased year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $432.3 million, which indicates an increase of 14.5% from the figure reported in the prior-year quarter. PLAY has a trailing four-quarter earnings surprise of 41.1%, on average.
Campbell Soup Company (CPB - Free Report) currently has an Earnings ESP of +0.60% and a Zacks Rank #3. The company is expected to register an increase in the bottom line when it reports fourth-quarter fiscal 2022 results. The Zacks Consensus Estimate for the quarterly earnings per share of 56 cents suggests an increase of 1.8% from the year-ago quarter.
Campbell Soup’s top line is anticipated to have increased year over year. The consensus mark for CPB’s revenues is pegged at $1.98 billion, indicating an increase of 5.5% from the figure reported in the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.