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Assessing Five Below (FIVE) Ahead of Q1 Earnings Release
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Five Below, Inc. (FIVE - Free Report) is likely to register an increase in the top line when it reports first-quarter fiscal 2024 results on Jun 5 after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $832.7 million, which suggests an improvement of 14.7% from the prior-year reported figure.
Over the past seven days, the Zacks Consensus Estimate for first-quarter earnings per share has decreased by a penny to 63 cents. The figure indicates decline of 6% from the prior-year quarter.
This extreme-value retailer for tweens, teens and beyond has a trailing four-quarter earnings surprise of 4.7%, on average. In the last reported quarter, the company’s bottom line missed the Zacks Consensus Estimate by a margin of 3.4%.
Factors to Consider
Five Below's emphasis on offering current and in-demand products, enhancing supply-chain efficiency, bolstering digital infrastructure and expanding physical store presence positions it for success. Known for its diverse product portfolio, Five Below comfortably adapts to evolving consumer preferences. These attributes, coupled with the pricing strategy, enable the company to cater to demographic shoppers and resonate with value-seeking customers.
We believe the higher penetration of Five Beyond and the e-commerce business, new customer acquisitions, the sales lift from remodels and conversions and selective merchandise price increases to counter inflation are likely to have favorably impacted the company’s sales. We expect comparable sales to increase 1.2% for the quarter under discussion.
However, the quarter may also reveal challenges, particularly in the form of potential deleverage in SG&A expenses and elevated shrink levels, which could adversely affect margins. We expect SG&A, as a percentage of net sales, to deleverage 80 basis points.
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 a Zacks Rank #4 (Sell) and an Earnings ESP of -5.51%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Bath & Body Works (BBWI - Free Report) currently has an Earnings ESP of +4.15% and a Zacks Rank of 2. The company’s bottom line is expected to remain flat year over year when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for the quarter is pegged at 33 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bath & Body Works’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.37 billion, which indicates a decline of 2.1% from the figure reported in the prior-year quarter. BBWI has a trailing four-quarter earnings surprise of 23.2%, on average.
PepsiCo, Inc. (PEP - Free Report) currently has an Earnings ESP of +0.15% and a Zacks Rank of 2. The company is likely to register a top-and-bottom-line increase when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for PepsiCo’s quarterly revenues is pegged at $22.7 billion, which implies growth of 1.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for PepsiCo’s quarterly earnings of $2.16 suggests an increase of 3.4% from the year-ago quarter’s levels. PEP has a trailing four-quarter earnings surprise of 5.1%, on average.
Ollie's Bargain Outlet Holdings (OLLI - Free Report) currently has an Earnings ESP of +1.80% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter fiscal 2024 earnings per share is pegged at 65 cents, which suggests a 32.7% decline year over year.
The Zacks Consensus Estimate for Ollie's Bargain Outlet’s quarterly revenues is pegged at $505.8 million, which indicates growth of 10.2% from the figure reported in the prior-year quarter. OLLI has a trailing four-quarter earnings surprise of 7.3%, on average.
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Assessing Five Below (FIVE) Ahead of Q1 Earnings Release
Five Below, Inc. (FIVE - Free Report) is likely to register an increase in the top line when it reports first-quarter fiscal 2024 results on Jun 5 after the closing bell. The Zacks Consensus Estimate for revenues is pegged at $832.7 million, which suggests an improvement of 14.7% from the prior-year reported figure.
Over the past seven days, the Zacks Consensus Estimate for first-quarter earnings per share has decreased by a penny to 63 cents. The figure indicates decline of 6% from the prior-year quarter.
This extreme-value retailer for tweens, teens and beyond has a trailing four-quarter earnings surprise of 4.7%, on average. In the last reported quarter, the company’s bottom line missed the Zacks Consensus Estimate by a margin of 3.4%.
Factors to Consider
Five Below's emphasis on offering current and in-demand products, enhancing supply-chain efficiency, bolstering digital infrastructure and expanding physical store presence positions it for success. Known for its diverse product portfolio, Five Below comfortably adapts to evolving consumer preferences. These attributes, coupled with the pricing strategy, enable the company to cater to demographic shoppers and resonate with value-seeking customers.
We believe the higher penetration of Five Beyond and the e-commerce business, new customer acquisitions, the sales lift from remodels and conversions and selective merchandise price increases to counter inflation are likely to have favorably impacted the company’s sales. We expect comparable sales to increase 1.2% for the quarter under discussion.
However, the quarter may also reveal challenges, particularly in the form of potential deleverage in SG&A expenses and elevated shrink levels, which could adversely affect margins. We expect SG&A, as a percentage of net sales, to deleverage 80 basis points.
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 a Zacks Rank #4 (Sell) and an Earnings ESP of -5.51%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
3 Stocks With the Favorable Combination
Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
Bath & Body Works (BBWI - Free Report) currently has an Earnings ESP of +4.15% and a Zacks Rank of 2. The company’s bottom line is expected to remain flat year over year when it reports first-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for the quarter is pegged at 33 cents. You can see the complete list of today’s Zacks #1 Rank stocks here.
Bath & Body Works’ top line is expected to decrease year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.37 billion, which indicates a decline of 2.1% from the figure reported in the prior-year quarter. BBWI has a trailing four-quarter earnings surprise of 23.2%, on average.
PepsiCo, Inc. (PEP - Free Report) currently has an Earnings ESP of +0.15% and a Zacks Rank of 2. The company is likely to register a top-and-bottom-line increase when it reports second-quarter fiscal 2024 numbers. The Zacks Consensus Estimate for PepsiCo’s quarterly revenues is pegged at $22.7 billion, which implies growth of 1.6% from the figure reported in the prior-year quarter.
The Zacks Consensus Estimate for PepsiCo’s quarterly earnings of $2.16 suggests an increase of 3.4% from the year-ago quarter’s levels. PEP has a trailing four-quarter earnings surprise of 5.1%, on average.
Ollie's Bargain Outlet Holdings (OLLI - Free Report) currently has an Earnings ESP of +1.80% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter fiscal 2024 earnings per share is pegged at 65 cents, which suggests a 32.7% decline year over year.
The Zacks Consensus Estimate for Ollie's Bargain Outlet’s quarterly revenues is pegged at $505.8 million, which indicates growth of 10.2% from the figure reported in the prior-year quarter. OLLI has a trailing four-quarter earnings surprise of 7.3%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.