Ross Stores, Inc. (ROST)) continues to grow and consumers opt for discounted goods in a tough economy.
Company Description
Ross Stores sells discounted apparel and home accessories through its stores. Brand name and designer items are offered at the locations, usually below retail prices.
EPS Up 52%
On Aug 20 the discounter announced second-quarter results that included earnings per share of 82 cents, up from 52 cents one year ago, and meeting expectations. Net earnings were up 45% to $103.4 million on an 8% increase in sales.
Raising Targets
In the same press release the company decided to increase its sales and earnings targets for rest of the year. Ross now expects to see a 5% to 6% increase in sales for the remainder of the year, up from 2% to 3%.
Management also sees annual earnings per share coming in at $3.06, give or take 6 cents. This would be about a 30% increase over fiscal 2008.
Analysts Like It
Following the aforementioned news, 10 of 12 analysts polled by Zacks raised full-year estimates for this and next year. Estimates now average $3.11, up 11 cents, for fiscal 2009. The Zacks Consensus Estimate for fiscal 2011 is $3.43, up from $3.27.
After the revisions, annual growth rates are now 33% and 10%, respectively.
The Chart
Shares of ROST have been surging on sharply rising estimates. You can see the trend of the Zacks Consensus Estimate in the multi-colored lines below.
