GO Earnings Prediction
The chart below shows how GO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GO sees a +3.59% change in stock price 10 days leading up to the earnings, and a -2.13% change 10 days following the report. On the earnings day itself, the stock moves by +0.65%. This data can give you a slight idea of what to expect for the next quarter's release.
GO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.13B
11.71%
8.83%
Gross Margin
30.95%
-4.27%
5.60%
Operating Margin
2.31%
-36.01%
4520.00%
Net Margin
1.24%
-48.76%
-1340.00%
EPS
0.14
-41.67%
-1500.00%
No Data Available
GO Earnings Analysis
Grocery Outlet Holding Corp. Common Stock Corporation (GO.O) Earnings Conference Call
Positive
Net Sales Increase: Net sales increased 10.4% to $1.11 billion during the third quarter due to new store sales and a 1.2% increase in comparable store sales, representing 7.6% comp growth on a two-year basis.
Gross Profit Increase: Gross profit increased 9.2% to $344.9 million, with a gross margin rate of 31.1%, which was 10 basis points ahead of expectations and a 20 basis points sequential improvement from the second quarter.
Adjusted EBITDA Performance: Adjusted EBITDA increased by 6% to $72.3 million for the quarter, with an adjusted EBITDA margin of 6.5% of net sales, 10 basis points ahead of expectations and a 50 basis points sequential improvement from the second quarter.
Cash and Debt Overview: We ended the quarter with $68.7 million of cash and total debt of $429.3 million, with net leverage of about 1.5x.
Stock Repurchase Activity: During the third quarter, we repurchased about 1.2 million shares of stock totaling $25 million at an average price of $21.50.
Negative
Sales Decline Challenges: Weak sales performance with a reported decline of 1.2% in comparable store sales, indicating challenges in maintaining customer engagement.
SGA Expense Surge: Significant increase in SGA expenses by 9.5% to $304.6 million compared to the same quarter last year, impacting overall profitability.
Net Interest Expense Increase: Net interest expense surged by 52.4% to $6.4 million, driven by higher average principal debt, affecting net income margins.
Tax Rate Increase: The effective tax rate increased to 28.6%, up from 18.6% in the previous year, primarily due to lower excess tax benefits related to stock options.
Adjusted EBITDA Decline: The company anticipates a reduction in adjusted EBITDA by approximately $16 million for the full year, reflecting ongoing operational challenges.
GO FAQs
How does GO typically perform around its earnings report dates?
Is Grocery Outlet Holding Corp. (GO) Q2 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
GO Earning Call Sentiment
Grocery Outlet Holding Corp. (GO) Q2 2024 Earnings Call Transcript
1.0x
00:00
00:00
GO.O
-4.55%Positive
The earnings call summary highlights several concerns: execution challenges, competitive pressures, and higher expenses impacting EBITDA guidance negatively. Although there are positives like increased net sales and share repurchase plans, the Q&A reveals ongoing system integration issues and unclear management responses, which create uncertainty. The downward revision of EBITDA guidance and higher expenses overshadow the positives. Given the market cap, the stock price is likely to experience a negative movement in the range of -2% to -8% over the next two weeks.
