Five Below Jumps on Solid Guidance

By Chris Lange Updated Jan 12, 5:12PM EST · Published Dec 2, 8:50AM EST

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Five Below Jumps on Solid Guidance — © Thinkstock

When Five Below Inc. (NASDAQ: FIVE) reported its fiscal third-quarter financial results after the markets closed on Thursday, it posted $0.10 in earnings per share (EPS) and $199.5 million in revenue. The consensus estimates from Thomson Reuters had called for $0.10 in EPS and revenue of $201.03 million. The same period of last year reportedly had EPS of $0.08 and $169.69 million in revenue.

Looking ahead, the fiscal fourth-quarter net sales are expected to be in the range of $391 million to $397 million, assuming a 2% to 3% increase in comparable sales. Net income is expected to be in the range of $49.2 million to $50.6 million, with a diluted income per common share range of $0.89 to $0.92.

The consensus estimates are $0.91 in EPS and $393.65 million in revenue for the fiscal fourth-quarter.

Management believes the Five Below is well-positioned to wow its customers with a compelling holiday assortment, accompanied by exciting marketing plans, including a new and expanded TV campaign.

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Excluding Friday’s move, Five Below has underperformed the broad markets, with the stock down 24%.

Joel Anderson, CEO of Five Below, commented:

We are pleased to have delivered earnings at the high-end of our guidance range in our fiscal third quarter. Our track record of outstanding new store performance continued and, despite being up against a strong third quarter last year, we delivered solid sales growth, expanded operating margins and increased EPS by 25% for the quarter.

Shares of Five Below closed Thursday up 1.3% at $39.88, with a consensus analyst price target of $49.07 and a 52-week trading range of $27.87 to $52.70. The stock was up 11% at $44.35 in early trading indications Friday.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.