Q3 EPS Estimates for Grocery Outlet Lowered by Analyst

Key Points

• Telsey Advisory Group has lowered its Q3 2025 earnings per share estimate for Grocery Outlet from $0.22 to $0.15, maintaining a "Market Perform" rating and a price target of $16.00.
• Several other brokerages have upgraded their ratings for Grocery Outlet, with Craig Hallum raising it to "buy" and setting a target price of $17.00.
• The company reported Q2 earnings of $0.23 per share, exceeding analyst expectations, but fell short on revenue with $1.18 billion compared to an expected $1.20 billion.

Grocery Outlet Holding Corp. (NASDAQ:GO - Free Report) - Research analysts at Telsey Advisory Group dropped their Q3 2025 earnings estimates for shares of Grocery Outlet in a research report issued on Wednesday, August 6th. Telsey Advisory Group analyst J. Feldman now anticipates that the company will post earnings of $0.15 per share for the quarter, down from their prior estimate of $0.22. Telsey Advisory Group currently has a "Market Perform" rating and a $16.00 target price on the stock. The consensus estimate for Grocery Outlet's current full-year earnings is $0.63 per share. Telsey Advisory Group also issued estimates for Grocery Outlet's Q4 2025 earnings at $0.20 EPS, Q1 2026 earnings at $0.11 EPS, Q2 2026 earnings at $0.20 EPS, Q3 2026 earnings at $0.26 EPS and Q4 2026 earnings at $0.22 EPS.

Grocery Outlet (NASDAQ:GO - Get Free Report) last posted its earnings results on Tuesday, August 5th. The company reported $0.23 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.17 by $0.06. The firm had revenue of $1.18 billion during the quarter, compared to analyst estimates of $1.20 billion. Grocery Outlet had a net margin of 0.18% and a return on equity of 6.34%. The business's revenue was up 4.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.25 EPS.

A number of other equities analysts also recently weighed in on GO. Morgan Stanley raised shares of Grocery Outlet from an "underweight" rating to an "equal weight" rating and boosted their price target for the stock from $13.00 to $16.00 in a report on Wednesday. UBS Group upped their price objective on shares of Grocery Outlet from $14.50 to $17.00 and gave the company a "neutral" rating in a report on Wednesday, May 7th. Jefferies Financial Group raised shares of Grocery Outlet from a "hold" rating to a "buy" rating and upped their price objective for the company from $13.00 to $18.00 in a report on Wednesday, April 16th. Wells Fargo & Company upped their price objective on shares of Grocery Outlet from $18.00 to $19.00 and gave the company an "overweight" rating in a report on Wednesday, May 7th. Finally, Craig Hallum raised shares of Grocery Outlet from a "hold" rating to a "buy" rating and set a $17.00 price objective on the stock in a report on Wednesday. One equities research analyst has rated the stock with a sell rating, nine have issued a hold rating and three have given a buy rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Hold" and an average price target of $16.08.

Grocery Outlet Stock Performance

Shares of NASDAQ:GO traded up $0.11 during midday trading on Friday, reaching $18.54. The company had a trading volume of 5,619,094 shares, compared to its average volume of 3,697,051. The company's 50 day moving average price is $13.67 and its 200 day moving average price is $14.23. The company has a current ratio of 1.21, a quick ratio of 0.25 and a debt-to-equity ratio of 0.38. The stock has a market cap of $1.82 billion, a P/E ratio of 264.89, a P/E/G ratio of 4.25 and a beta of 0.27. Grocery Outlet has a 52-week low of $10.26 and a 52-week high of $21.67.

Institutional Investors Weigh In On Grocery Outlet

Several hedge funds and other institutional investors have recently modified their holdings of the stock. Sterling Capital Management LLC increased its position in shares of Grocery Outlet by 53.9% in the fourth quarter. Sterling Capital Management LLC now owns 5,808 shares of the company's stock worth $91,000 after purchasing an additional 2,034 shares during the last quarter. Invesco Ltd. increased its position in shares of Grocery Outlet by 11.1% in the fourth quarter. Invesco Ltd. now owns 834,373 shares of the company's stock worth $13,025,000 after purchasing an additional 83,043 shares during the last quarter. 111 Capital bought a new position in shares of Grocery Outlet in the fourth quarter worth approximately $207,000. D.A. Davidson & CO. bought a new position in shares of Grocery Outlet in the first quarter worth approximately $165,000. Finally, Hussman Strategic Advisors Inc. bought a new position in Grocery Outlet during the first quarter valued at approximately $881,000. 99.87% of the stock is currently owned by institutional investors.

About Grocery Outlet

Grocery Outlet Holding Corp. operates as a retailer of consumables and fresh products sold through independently operated stores in the United States. Its stores offer products in various categories, such as dairy and deli, produce, floral, fresh meat, seafood products, grocery, general merchandise, health and beauty care, frozen food, beer and wine, and ethnic products.