Ross Stores (ROST) Stock Slips Despite Q4 Earnings Beat
Zacks Investment Research | Mar 03, 2020 08:47PM ET
Ross Stores, Inc. (NASDAQ:ROST) reported robust fourth-quarter fiscal 2019 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate. This marks the third straight quarter of positive earnings and sales surprise. Further, earnings and sales improved on a year-over-year basis.
However, the company provided a cautious view for the first quarter and fiscal 2020 on its strong year-over-year comparisons as well as the ongoing uncertain macro-economic, political and retail environments.
Additionally, Ross Stores stated that its guidance does not account for the potential impacts of the spread of coronavirus on its results. However, the company warned investors that the highly uncertain supply-chain disruptions in China might hurt its performance. Furthermore, it remains concerned about the negative effects on the U.S. consumer demand if the virus spreads.
Despite the strong results, shares of Ross Stores declined 3.2% in the after-hours session on Mar 3 as management warned that further spread of coronavirus might alter growth prospects. In the past three months, shares of the Zacks Rank #3 (Hold) company have declined 3.8% against the industry ’s growth of 0.1%.
Q4 Highlights
Ross Stores posted earnings of $1.28 per share, which beat the Zacks Consensus Estimate of $1.26 and surpassed the company’s guidance of $1.20-$1.25. Further, earnings grew 7% from $1.20 per share reported in the prior-year period.
Ross Stores, Inc. Price, Consensus and EPS Surprise
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