As retailers continue to report their earnings for the fourth quarter of 2022, investors are waiting for the upcoming earnings report from Ross Stores (NASDAQ:ROST), which is set to issue its fourth quarter results after market close on Tuesday.

Backward Looking Data: Target reported better-than-expected earnings and sales for its fourth quarter, with EPS of $1.89 beating estimates of $1.40 and sales of $31.395 billion surpassing estimates of $30.72 billion.

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The San Bruno, California-based company also provided guidance for first quarter EPS of $1.50 to $1.90 and full-year EPS of $7.75-$8.75, beating analyst estimates.

Meanwhile, Walmart beat earnings estimates by 13.25% with EPS of $1.71 and reported sales of $164.00 billion, exceeding estimates by 2.65%. The company also raised its quarterly dividend and provided guidance for FY24 adjusted EPS.

The Census Bureau's retail sales report showed that U.S. retail and food services sales were up 3% in January, beating estimates for a 1.8% increase.

Core retail sales, which exclude gasoline and autos, were up 2.3%, outperforming estimates for a 0.8% increase. Total sales from November through January were up 6.1% from the same period a year ago. These positive results indicate that consumer spending is on the rise, which bodes well for retailers like Ross Stores.

Analysts expect Ross to report an EPS of $1.24 on revenues of $5.41 billion, and investors are hoping for positive guidance from the company for the next quarter.

Last quarter, the company beat EPS estimates by $0.19, with shares climbing 10% the following day. If the company beats with positive guidance, it could potentially lead to another boost in share price.

Citigroup in February maintained a buy rating on Ross Stores, and raised the price target from $116 to $133. Telsey Advisory Group maintained a market perform rating with a $120 price target. 

Price action: Shares of Ross Stores are trading 0.49% higher to $111.45, according to data from Benzinga Pro.

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