Five Below Earnings: Here’s Why the Stock is Rising Now

Five Below (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 up 12.82%.

Five Below Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 266.67% to $0.11 in the quarter versus EPS of $0.03 in the year-earlier quarter.

Revenue: Rose 34.88% to $117.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Five Below reported adjusted EPS income of $0.11 per share. By that measure, the company beat the mean analyst estimate of $0.03. It beat the average revenue estimate of $109.22 million.

Quoting Management: Thomas Vellios, Co-Founder, President and CEO, stated: “We are extremely pleased with our top and bottom line performance in the second quarter which once again illustrates the strong fundamentals of our business. We saw solid performance across most of our categories reflecting the broad appeal of the Five Below concept, merchandise and value proposition.”

Key Stats (on next page)…

Revenue increased 22.49% from $95.6 million in the previous quarter. EPS were the same at $0.11 as 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 $0.51 and has not changed. For the current year, the average estimate has moved up from a profit of $0.67 to a profit of $0.69 over the last ninety days.

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