Retail

What to Expect From Five Below Earnings

Chris Lange

Published: March 22, 2016 11:25 am

Last Updated: March 13, 2020 10:07 pm

Five Below Inc. (NASDAQ: FIVE) is set to report its fiscal fourth-quarter financial results after the markets close on Tuesday. Thomson Reuters consensus estimates call for $0.76 in earnings per share (EPS) on $323.74 million in revenue. In the same period of the previous year, it posted EPS of $0.61 and $263.76 million in revenue.

This is a dollar store for teenagers and other young people, who tend to not have any money anyway. And teenagers have high unemployment regardless of the economy. Everything in Five Below’s stores is costs $5 or less. A recession would have to be so bad that teenagers and preteens lose their meager allowance for it to really affect the company.

Much of Five Below’s business has to do with school supplies, as well, and the public school system will not collapse in the next recession.

Prior to the release of the earnings report, a few analysts weighed in on Five Below:

• Stifel upgraded it to a Buy rating from Hold with a $42 price target.
• Deutsche Bank reiterated a Hold rating with a $35 price target.
• Wells Fargo reiterated an Outperform rating.
• Jefferies reiterated a Buy rating with a $48 price target.

So far in 2016, Five Below has outperformed the broad markets, with the stock up 23%. Over the past year, the stock is up 24%.

Shares of Five Below were trading down about 2% at $38.79 on Tuesday, with a consensus analyst price target of $41.64 and a 52-week trading range of $25.95 to $41.47.