According to Benzinga Pro, during Q2, Ollie's Bargain Outlet (NASDAQ:OLLI) earned $14.10 million, a 12.57% increase from the preceding quarter. Ollie's Bargain Outlet also posted a total of $452.48 million in sales, a 11.27% increase since Q1. Ollie's Bargain Outlet earned $12.52 million, and sales totaled $406.67 million in Q1.

Why Is ROIC Significant?

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q2, Ollie's Bargain Outlet posted an ROIC of 1.26%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

For Ollie's Bargain Outlet, the positive return on invested capital ratio of 1.26% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.

Upcoming Earnings Estimate

Ollie's Bargain Outlet reported Q2 earnings per share at $0.22/share, which did not meet analyst predictions of $0.33/share.

This article was generated by Benzinga's automated content engine and reviewed by an editor.