Five Below shares declined during extended trading, after the company’s second-quarter revenue missed analysts' expectations.
For the quarter ended Aug. 3, Five Below’s net sales increased +20% year-over-year to $417.4 million, falling short of analysts’ estimates of $421.1 million. Comparable-store sales rose +1.4% for the quarter.
However, the discount retail company’s diluted earnings per share of 51 cents surpassed analysts’ expectations of 50 cents. It was also higher compared to the year-ago quarter’s 45 cents.
CEO Joel Anderson mentioned that Five Below had a slower start to summer which affected sales of the company’s seasonal items.
But Anderson also emphasized on Five Below’s strong results from new stores. Anderson said the company opened 44 new stores in 21 states, and is on track to finish the year with 150 new stores.
Looking ahead, Five Below has forecasted third-quarter net sales to range between $369 million and $374 million based on opening 55 new stores and assuming a 2% to 3% increase in comparable sales. Net income is expected to range between $7.6 million and $9.8 million (i.e. diluted EPS of 14 cents to 17 cents) in the third quarter.
The 50-day moving average for FIVE moved below the 200-day moving average on April 22, 2024. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
The 10-day moving average for FIVE crossed bearishly below the 50-day moving average on March 27, 2024. This indicates that the trend has shifted lower and could be considered a sell signal. In of 11 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FIVE declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for FIVE entered a downward trend on April 30, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Indicator demonstrates that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
The Moving Average Convergence Divergence (MACD) for FIVE just turned positive on April 25, 2024. Looking at past instances where FIVE's MACD turned positive, the stock continued to rise in of 55 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where FIVE advanced for three days, in of 327 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. FIVE’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (6.234) is normal, around the industry mean (12.797). P/E Ratio (33.065) is within average values for comparable stocks, (35.906). Projected Growth (PEG Ratio) (1.138) is also within normal values, averaging (2.536). FIVE has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.033). P/S Ratio (2.796) is also within normal values, averaging (87.931).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. FIVE’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a retaier of clothing and other accessories for teens
Industry SpecialtyStores