Ollie's Bargain Outlet Set to Release Q1 Earnings on June 3rd
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: seekingalpha
- Earnings Announcement: Ollie's Bargain Outlet is set to announce its Q1 earnings on June 3rd before market open, with consensus EPS estimate at $0.87, reflecting a 16% year-over-year increase, and revenue estimate at $662.27 million, up 14.8%, indicating strong performance amid economic recovery.
- Historical Performance: Over the past two years, Ollie's has beaten EPS estimates 63% of the time and revenue estimates 50% of the time, showcasing the company's stability in profitability and market expectation management.
- Estimate Revision Trends: In the last three months, EPS estimates have seen 5 upward revisions and 6 downward revisions, while revenue estimates have also experienced 5 upward and 6 downward revisions, reflecting market divergence and uncertainty regarding the company's future performance.
- Market Reaction Analysis: Following a strong recommendation from Jefferies analysts, Ollie's stock is considered undervalued, leading to positive market reactions that may set a favorable investor sentiment ahead of the upcoming earnings report.
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Analyst Views on OLLI
Wall Street analysts forecast OLLI stock price to rise
13 Analyst Rating
10 Buy
3 Hold
0 Sell
Strong Buy
Current: 79.740
Low
120.00
Averages
144.46
High
162.00
Current: 79.740
Low
120.00
Averages
144.46
High
162.00
About OLLI
Ollie's Bargain Outlet Holdings, Inc. operates as a retailer of closeout merchandise and excess inventory. The Company and its subsidiaries principally buys overproduced, overstocked, and closeout merchandise from manufacturers, wholesalers, distributors, brokers, and other retailers. In addition, it augments its name-brand closeout deals with private label products. It offers customers a selection of brand name products, including housewares, bed and bath, food, floor coverings, health and beauty aids, books and stationery, toys, and electronics. The Company operates over 575 stores in 31 states. The Company's retail locations are located in Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Jersey, New York, North Carolina, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Vermont, Virginia, and West Virginia.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Ollie's Reports Strong Quarterly Earnings Growth
- Significant Sales Growth: Ollie's Bargain Outlet reported a 14% increase in sales to $659 million, indicating strong performance in the retail market, which is expected to further drive market share growth in the future.
- Margin Improvement: Gross margin increased by 80 basis points to 41.9%, primarily due to lower supply chain costs and higher merchandise margins, which will enhance the company's profitability and support long-term financial health.
- Accelerated Store Openings: The company opened 27 new stores in the first quarter, increasing its total store count by over 15% to 672, reflecting Ollie's proactive strategy in expanding market coverage and enhancing customer touchpoints.
- Inventory Management Risks: Although inventory increased by 12% year-over-year, the expansion of new stores may pose risks if sales do not meet expectations, particularly as lower-income consumers are affected by high gas prices, which could challenge future performance.
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Ollie's Bargain Outlet Reports Significant Q1 Profit Growth
- Profit Growth: Ollie's Bargain Outlet reported a first-quarter profit of $56.40 million, or $0.92 per share, marking a significant increase from last year's $47.56 million and $0.77 per share, indicating strong market performance.
- Adjusted Earnings: Excluding items, the company reported adjusted earnings of $55.91 million, or $0.91 per share, showcasing successful cost control and efficiency improvements, which further bolster investor confidence.
- Revenue Increase: The company's revenue rose 14.2% year-over-year to $658.93 million from $576.77 million last year, reflecting sustained consumer demand for discount retail, driving sales growth.
- Full-Year Guidance: Ollie's provided full-year EPS guidance of $4.45 to $4.55, with expected revenue between $2.980 billion and $3.000 billion, indicating an optimistic outlook for future performance that may attract more investor interest.
See More
Private Equity Withdrawal Caps Impact Market Movements
- Private Equity Market Volatility: Partners Group's decision to cap withdrawals from one of its funds led to a 6% drop in Blackstone's stock and over a 5.5% decline in KKR, indicating market concerns regarding liquidity risks in the private equity sector.
- Palo Alto's Cautious Outlook: Despite Palo Alto Networks providing stronger-than-expected revenue guidance, its stock fell 2%, reflecting market skepticism about future growth, even as it reported adjusted earnings of 85 cents per share, surpassing analyst expectations.
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Ollie's Q1 Earnings Exceed Expectations with Strong Growth
- Significant Sales Growth: Ollie's reported net sales of $658.9 million in Q1, reflecting a 14.2% year-over-year increase, primarily driven by new store openings and improved comparable store sales, demonstrating the company's robust performance in a competitive retail landscape.
- Enhanced Profitability: Adjusted earnings per share rose 21.3% to $0.91, with net income reaching $56.4 million, indicating the company's success in cost control and margin improvement, further solidifying its financial health.
- Accelerated Store Expansion: The company opened 27 new stores in Q1, bringing the total to 672, with a year-over-year growth rate of 15.1%, which not only enhances market coverage but also lays a strong foundation for future sales growth.
- Increased Shareholder Returns: Ollie's returned $53 million to shareholders through stock repurchases in Q1, reflecting confidence in future cash flows while also boosting earnings per share, thereby enhancing investor trust.
See More
Ollie's Reports Strong Quarterly Earnings Growth
- Significant Sales Growth: Ollie's Bargain Outlet reported a 14% increase in sales to $659 million, indicating strong performance in the retail market, which is expected to further drive market share growth in the future.
- Margin Improvement: Gross margin increased by 80 basis points to 41.9%, primarily due to lower supply chain costs and higher merchandise margins, which will enhance the company's profitability and support long-term financial health.
- Accelerated Store Openings: The company opened 27 new stores in the first quarter, increasing its total store count by over 15% to 672, reflecting Ollie's proactive strategy in expanding market coverage and enhancing customer touchpoints.
- Inventory Management Risks: Although inventory increased by 12% year-over-year, the expansion of new stores may pose risks if sales do not meet expectations, particularly as lower-income consumers are affected by high gas prices, which could challenge future performance.
See More
Market Watch: Chip Stocks Decline and IPO Developments
- Chip Stock Decline: Broadcom's failure to raise guidance sufficiently led to a 15% drop in its stock, contributing to a lower open for the S&P 500, which is on track for its first down week in ten, reflecting growing investor concerns over tech stocks.
- CrowdStrike's Strong Quarter: Despite a nearly 10% drop in stock price, CrowdStrike reported a full-year guidance of 27.7% growth in net new annual recurring revenue, a 5.2 percentage point increase over prior guidance, indicating robust performance in the market, although the market reaction was tepid.
- Alphabet's Fundraising Plan: Alphabet plans to sell $85 billion in stock to fund its AI buildout to surpass Anthropic and OpenAI, a move that may prompt other tech giants like Microsoft and Amazon to follow suit, intensifying market fundraising pressures.
- Quantinuum's Successful IPO: Quantum computing company Quantinuum priced its IPO at $60 per share, raising nearly $1.7 billion and achieving a valuation of over $14 billion, demonstrating strong market interest in quantum technology despite the overall bearish market sentiment.
See More
Quantum Computing Stocks Decline, GameStop Shares Rise
- Quantum Stocks Decline: Quantum computing stocks experienced a broad decline, with Rigetti Computing down 10%, D-Wave Quantum down 7%, and IonQ down 4%, indicating that investors opted to cash out after a rally in the previous session, leading to a weakened overall market sentiment.
- GameStop's Strong Earnings: GameStop reported first-quarter revenue of $835.3 million, reflecting a 14% year-over-year increase, and the board approved a $2 billion share repurchase authorization, which not only boosts investor confidence but may also enhance future shareholder returns.
- Energy Stocks Boosted by Oil Prices: Oil prices rose nearly 2% after Israeli Prime Minister Netanyahu indicated readiness to act against Iran, lifting energy stocks, with Exxon Mobil and Marathon Petroleum both gaining 3%, suggesting sustained market optimism regarding energy demand.
- Palo Alto Networks Stock Drop: Despite Palo Alto Networks posting stronger-than-expected revenue guidance, its stock fell nearly 6%, which may reflect market concerns about future growth, especially in light of the company's adjustments to its full-year revenue expectations.
See More
Ollie's Bargain Outlet Reports Significant Q1 Profit Growth
- Profit Growth: Ollie's Bargain Outlet reported a first-quarter profit of $56.40 million, or $0.92 per share, marking a significant increase from last year's $47.56 million and $0.77 per share, indicating strong market performance.
- Adjusted Earnings: Excluding items, the company reported adjusted earnings of $55.91 million, or $0.91 per share, showcasing successful cost control and efficiency improvements, which further bolster investor confidence.
- Revenue Increase: The company's revenue rose 14.2% year-over-year to $658.93 million from $576.77 million last year, reflecting sustained consumer demand for discount retail, driving sales growth.
- Full-Year Guidance: Ollie's provided full-year EPS guidance of $4.45 to $4.55, with expected revenue between $2.980 billion and $3.000 billion, indicating an optimistic outlook for future performance that may attract more investor interest.
See More
Private Equity Withdrawal Caps Impact Market Movements
- Private Equity Market Volatility: Partners Group's decision to cap withdrawals from one of its funds led to a 6% drop in Blackstone's stock and over a 5.5% decline in KKR, indicating market concerns regarding liquidity risks in the private equity sector.
- Palo Alto's Cautious Outlook: Despite Palo Alto Networks providing stronger-than-expected revenue guidance, its stock fell 2%, reflecting market skepticism about future growth, even as it reported adjusted earnings of 85 cents per share, surpassing analyst expectations.
- GitLab's Workforce Reduction: GitLab shares dropped nearly 4% after guiding for adjusted earnings per share below analyst estimates and announcing a 14% workforce reduction, which is expected to incur restructuring charges between $30 million and $35 million, highlighting the challenges the company faces.
- Marvell Technology's Stock Surge: Following a remarkable 32% increase in a single day, Marvell Technology's stock jumped over 13% in premarket trading, reflecting strong investor confidence in its robust performance and future growth potential.
See More
Ollie's Q1 Earnings Exceed Expectations with Strong Growth
- Significant Sales Growth: Ollie's reported net sales of $658.9 million in Q1, reflecting a 14.2% year-over-year increase, primarily driven by new store openings and improved comparable store sales, demonstrating the company's robust performance in a competitive retail landscape.
- Enhanced Profitability: Adjusted earnings per share rose 21.3% to $0.91, with net income reaching $56.4 million, indicating the company's success in cost control and margin improvement, further solidifying its financial health.
- Accelerated Store Expansion: The company opened 27 new stores in Q1, bringing the total to 672, with a year-over-year growth rate of 15.1%, which not only enhances market coverage but also lays a strong foundation for future sales growth.
- Increased Shareholder Returns: Ollie's returned $53 million to shareholders through stock repurchases in Q1, reflecting confidence in future cash flows while also boosting earnings per share, thereby enhancing investor trust.
See More
