Ross Stores Stock Gains On Solid Q3 Earnings, Raised FY23 Forecast

Ross Stores, Inc. ROST shares are trading higher in Thursday's after-hours session on the heels of the company's third-quarter earnings. Here's what's going on.

What To Know: Ross Stores reported quarterly earnings of $1.33 per share, surpassing estimates of $1.21, representing a 33% increase over earnings of $1.00 per share from the same period last year.

Revenue clocked in at $4.92 billion, above the analyst consensus estimate of $4.82 billion, a 7.87% increase over sales of $4.57 billion the same period last year.

The company also had cash and cash equivalents of $4.49 million in the nine months ended Oct. 28.

Ross Stores reiterated its prior sales guidance for the fourth-quarter, taking a careful approach due to factors such as macroeconomic conditions which are impacting the company.

Same store sales for the 13 weeks ending Jan. 27 are anticipated to be up 1% to 2%. Fourth-quarter earnings are expected to be between $1.56 and $1.62 per share, versus previous guidance of between $1.58 and $1.64 per share.

The company raised its full-year 2023 earnings per share outlook from between $5.15 and $5.26 to between $5.30 and $5.36.

Barbara Rentler, CEO, commented, "We are pleased that both sales and earnings outperformed our expectations for the quarter as customers responded favorably to the terrific values we offered throughout our stores. Operating margin for the period was 11.2%, up from 9.8% last year, as leverage from the same store sales gain and lower freight costs was partially offset by higher incentives and store wages."

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ROST Price Action: Shares of ROST were up 5.47% at $126.72 in the after-hours session at the time of publication, according to Benzinga Pro.

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