Ross Stores, Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Ross Stores, Inc. (NASDAQ:ROST) will unveil its latest earnings on Thursday, August 18, 2011. Ross Stores Inc. operates two chains of off-price retail apparel and home accessories stores in the U.S. and Guam.

Ross Stores, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.28 per share, a rise of 19.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.25. Between one and three months ago, the average estimate moved down, but has risen from $1.23 during the last month. For the year, analysts are projecting profit of $5.41 per share, a rise of 16.8% from last year.

Past Earnings Performance: For the past four quarters, the company has met expecations. Last quarter, the company reported net income of $1.48 per share to fall in step with the mean estimate.

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Wall St. Revenue Expectations: On average, analysts predict $2.08 billion in revenue this quarter, a rise of 8.9% from the year ago quarter. Analysts are forecasting total revenue of $8.49 billion for the year, a rise of 7.9% from last year’s revenue of $7.87 billion.

Analyst Ratings: Analysts seem relatively indifferent about Ross Stores with 13 of 20 analysts surveyed maintaining a hold rating.

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 21.5% while it rose 13.2% in the fourth quarter of the last fiscal year and 15.5% in the third quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 7.2% to $2.07 billion in first quarter. The figure rose 8.4% in the fourth quarter of the last fiscal year from the year earlier, climbed 7.5% in the third quarter of the last fiscal year from the year-ago quarter and 8.1% in the second quarter of the last fiscal year.

Competitors to Watch: Citi Trends, Inc. (NASDAQ:CTRN), Syms Corp. (NASDAQ:SYMS), Stein Mart, Inc. (NASDAQ:SMRT), Stage Stores, Inc. (NYSE:SSI), Nordstrom, Inc. (NYSE:JWN), Abercrombie & Fitch Co. (NYSE:ANF), Urban Outfitters, Inc. (NASDAQ:URBN), J.C. Penney (NYSE:JCP), The TJX Companies (NYSE:TJX), Wal-Mart (NYSE:WMT), Target (NYSE:TGT), American Eagle Outfitters (NYSE:AEO), The Gap Inc. (NYSE:GPS), and The Buckle, Inc. (NYSE:BKE).

Stock Price Performance: During May 18, 2011 to August 12, 2011, the stock price had fallen $9.96 (-12.2%) from $81.64 to $71.68. The stock price saw one of its best stretches over the last year between October 19, 2010 and October 27, 2010 when shares rose for seven-straight days, rising 3.7% (+$2.06) over that span. It saw one of its worst periods between July 7, 2011 and July 18, 2011 when shares fell for eight-straight days, falling 5% (-$4.07) over that span. Shares are up $8.80 (+14%) year to date.

(Source: Xignite Financials)

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

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