Ross Stores Earnings Preview: Rising Expectations for the First Quarter

Ross Stores

will be reporting its first-quarter 2011 results tomorrow, May 19, before the opening bell. Analysts are looking for the tech company to post earnings of $1.47 per share on revenue of $2.1 billion. That is up from $1.16 per share on $1.9 billion in the same period of last year. Note that the earnings estimate was $1.32 per share some 60 days ago but was bumped after the company increased its guidance. Ross Stores offer branded and designer apparel, accessories, footwear and home fashions, as well as gift items, linens, and other home-related merchandise mostly in strip malls in the western United States. The company is headquartered in Pleasanton, California, and was founded in 1957. Ross Stores reported strong same-store sales this spring, and the company has been discussed as a potential buy-out target. Looking ahead to the full year, analysts so far expect to see per-share earnings up 13.3% from a year ago and revenues up 7.2%. Ross Stores earnings have been in line with consensus estimates in recent quarters. The long-term earnings per share growth forecast is 13.7%, the price/earnings-to-growth ratio is 1.1 and the return on equity is 44.9%. The share price is up about 28% since the beginning of the year, and shares are trading near the 52-week high of $83.11. The stock has outperformed its industry average, as well as competitors Kohl's

and Walmart

, year to date.