Grocery Outlet (NASDAQ:GO) Issues Earnings Results, Beats Expectations By $0.07 EPS

Key Points

• Grocery Outlet reported quarterly EPS of $0.20, beating analyst expectations by $0.07, while revenue of $1.19 billion also exceeded estimates of $1.17 billion.
• The stock rose 3.5% to $10.17 following the results, though the company reported a negative 8.08% net margin and remains below its 12-month high of $19.23.
• Analyst sentiment remains cautious: 11 analysts rate the stock Hold and two rate it Sell, resulting in an average “Reduce” rating and a $9.65 price target.

Grocery Outlet (NASDAQ:GO - Get Free Report) released its earnings results on Wednesday. The company reported $0.20 earnings per share for the quarter, beating the consensus estimate of $0.13 by $0.07, FiscalAI reports. The firm had revenue of $1.19 billion for the quarter, compared to analyst estimates of $1.17 billion. Grocery Outlet had a positive return on equity of 5.69% and a negative net margin of 8.08%.

Grocery Outlet Stock Up 3.5%

Shares of Grocery Outlet stock traded up $0.34 on Wednesday, hitting $10.17. The company had a trading volume of 4,294,964 shares, compared to its average volume of 3,145,219. The firm has a market capitalization of $1.01 billion, a P/E ratio of -2.62, a P/E/G ratio of 15.51 and a beta of 0.65. Grocery Outlet has a twelve month low of $5.66 and a twelve month high of $19.23. The company has a debt-to-equity ratio of 0.59, a current ratio of 1.28 and a quick ratio of 0.27. The stock has a 50-day moving average of $9.55 and a 200-day moving average of $8.63.

Insider Activity

In related news, insider Paul Blaine Miller bought 5,000 shares of Grocery Outlet stock in a transaction that occurred on Thursday, June 25th. The stock was purchased at an average cost of $9.50 per share, with a total value of $47,500.00. Following the purchase, the insider owned 64,171 shares in the company, valued at approximately $609,624.50. This trade represents a 8.45% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 5.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Aster Capital Management DIFC Ltd grew its position in shares of Grocery Outlet by 1,030.4% in the 4th quarter. Aster Capital Management DIFC Ltd now owns 2,532 shares of the company's stock valued at $26,000 after acquiring an additional 2,308 shares during the period. Kestra Advisory Services LLC acquired a new position in shares of Grocery Outlet during the 4th quarter worth approximately $35,000. State of Wyoming increased its holdings in shares of Grocery Outlet by 96.9% during the 4th quarter. State of Wyoming now owns 7,886 shares of the company's stock worth $80,000 after acquiring an additional 3,880 shares during the last quarter. Shay Capital LLC bought a new stake in Grocery Outlet in the 3rd quarter valued at $160,000. Finally, Olympiad Research LP bought a new stake in Grocery Outlet in the 4th quarter valued at $101,000. 99.87% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of analysts have recently commented on the company. TD Cowen upped their price target on Grocery Outlet from $6.00 to $8.00 and gave the company a "hold" rating in a research note on Thursday, May 14th. Wells Fargo & Company boosted their price objective on shares of Grocery Outlet from $7.00 to $9.00 and gave the company an "equal weight" rating in a report on Thursday, May 14th. DA Davidson increased their target price on shares of Grocery Outlet from $7.00 to $9.00 and gave the stock a "neutral" rating in a report on Thursday, May 14th. Finally, Weiss Ratings cut shares of Grocery Outlet from a "sell (d)" rating to a "sell (d-)" rating in a research report on Thursday, July 30th. Eleven equities research analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Reduce" and an average price target of $9.65.

Grocery Outlet Company Profile

Grocery Outlet Holding Corp. NASDAQ: GO is a specialty discount retailer that offers consumers deeply discounted groceries by purchasing excess inventory, closeouts, and overstocks from manufacturers and distributors. Headquartered in Emeryville, California, the company operates two primary banners—Grocery Outlet and Fresh2Go—with a combined footprint of more than 400 stores. Its product assortment spans fresh produce, meat, dairy, bakery items, household staples, natural and organic offerings, and select specialty products, all sold at significant markdowns compared to conventional supermarkets.

The company's unique buying model enables it to source inventory through opportunistic purchases of surplus freight, discontinued items, and closeout deals, which it then passes on as savings to its customers.

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