Five Below Earnings: Here’s Why Investors are Not Happy Now

Five Below Inc (NASDAQ:FIVE) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 7.02%.

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Five Below Inc Earnings Cheat Sheet

Results:

Revenue: Rose 37.96% to $173.59 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $0.39 per share. By that measure, the company beat the mean analyst estimate of $0.38. It beat the average revenue estimate of $170.22 million.

Quoting Management: Thomas Vellios, Co-Founder, President and CEO, stated: “We are extremely pleased with our fourth quarter and full-year results which demonstrate that our dynamic, trend-right merchandise offering, differentiated shopping experience and value price-points continue to resonate with both new and existing customers alike. The strong holiday quarter capped a year in which we delivered 41% sales growth and 50% adjusted operating income growth. Our new stores continue to illustrate the universal appeal, consistency and strength of our model with the above-plan performance of our 2012 class driven by openings in new markets like Atlanta, St. Louis and outstate Michigan, as well as existing markets where we are expanding our presence. In addition, our comparable stores delivered a strong 7% sales increase for the year on a 52 week basis. I am extremely proud of the entire Five Below team and their contributions that drove our 2012 performance.”

Key Stats (on next page)…

Revenue increased 100.47% from $86.59 million in the previous quarter. EPS increased 1200% from $0.03 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.05 and has not changed. For the current year, the average estimate is a profit of $0.5, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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