Grocery Outlet Q2 EPS Estimate Decreased by Zacks Research

Key Points

• Zacks Research lowered its Q2 2026 EPS estimate for Grocery Outlet to $0.09 from $0.13, while the full-year 2026 estimate remains $0.37 per share.
• Grocery Outlet’s latest quarter beat expectations, reporting EPS of $0.05 versus the $0.02 consensus and revenue of $1.17 billion, up 3.6% year over year.
• Wall Street sentiment remains cautious, with 11 analysts rating the stock Hold, 2 Sell ratings, and a consensus rating of “Reduce” with an average price target of $10.32.

Grocery Outlet Holding Corp. (NASDAQ:GO - Free Report) - Research analysts at Zacks Research cut their Q2 2026 EPS estimates for shares of Grocery Outlet in a note issued to investors on Wednesday, May 27th. Zacks Research analyst Team now anticipates that the company will post earnings of $0.09 per share for the quarter, down from their prior forecast of $0.13. The consensus estimate for Grocery Outlet's current full-year earnings is $0.37 per share. Zacks Research also issued estimates for Grocery Outlet's FY2026 earnings at $0.37 EPS.

Grocery Outlet (NASDAQ:GO - Get Free Report) last posted its quarterly earnings results on Wednesday, May 13th. The company reported $0.05 EPS for the quarter, beating analysts' consensus estimates of $0.02 by $0.03. The business had revenue of $1.17 billion during the quarter, compared to the consensus estimate of $1.15 billion. Grocery Outlet had a positive return on equity of 5.69% and a negative net margin of 8.08%.Grocery Outlet's revenue for the quarter was up 3.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.13 earnings per share. Grocery Outlet has set its FY 2026 guidance at 0.450-0.550 EPS.

A number of other equities analysts have also recently issued reports on GO. DA Davidson increased their price target on Grocery Outlet from $7.00 to $9.00 and gave the stock a "neutral" rating in a report on Thursday, May 14th. Telsey Advisory Group cut Grocery Outlet from an "outperform" rating to a "market perform" rating and dropped their price objective for the company from $15.00 to $9.00 in a research note on Thursday, March 5th. Morgan Stanley decreased their target price on Grocery Outlet from $11.00 to $7.00 and set an "equal weight" rating for the company in a research report on Thursday, March 5th. Weiss Ratings downgraded shares of Grocery Outlet from a "sell (d)" rating to a "sell (d-)" rating in a research report on Friday, May 15th. Finally, TD Cowen lifted their price objective on Grocery Outlet from $6.00 to $8.00 and gave the stock a "hold" rating in a report on Thursday, May 14th. Eleven investment analysts have rated the stock with a Hold rating and two have issued a Sell rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Reduce" and an average price target of $10.32.

Grocery Outlet Stock Performance

Shares of GO stock opened at $8.51 on Monday. The stock has a market capitalization of $841.81 million, a PE ratio of -2.19, a PEG ratio of 13.37 and a beta of 0.67. The company has a debt-to-equity ratio of 0.59, a current ratio of 1.28 and a quick ratio of 0.27. Grocery Outlet has a one year low of $5.66 and a one year high of $19.41. The business's 50 day simple moving average is $7.49 and its 200 day simple moving average is $8.96.

Hedge Funds Weigh In On Grocery Outlet

A number of hedge funds have recently made changes to their positions in GO. Boothbay Fund Management LLC lifted its stake in shares of Grocery Outlet by 562.1% in the 3rd quarter. Boothbay Fund Management LLC now owns 284,979 shares of the company's stock valued at $4,574,000 after purchasing an additional 241,936 shares during the last quarter. Heartland Advisors Inc. purchased a new position in shares of Grocery Outlet in the 3rd quarter valued at $4,448,000. Van Berkom & Associates Inc. increased its holdings in shares of Grocery Outlet by 16.9% in the 3rd quarter. Van Berkom & Associates Inc. now owns 3,757,022 shares of the company's stock valued at $60,300,000 after acquiring an additional 543,535 shares during the period. UBS Group AG grew its stake in Grocery Outlet by 87.6% during the 4th quarter. UBS Group AG now owns 2,726,299 shares of the company's stock worth $27,536,000 after buying an additional 1,272,859 shares during the last quarter. Finally, Dana Investment Advisors Inc. purchased a new position in Grocery Outlet during the 3rd quarter worth $5,925,000. Institutional investors own 99.87% of the company's stock.

Insider Transactions at Grocery Outlet

In other news, CEO Jason J. N. Potter purchased 110,252 shares of Grocery Outlet stock in a transaction that occurred on Monday, March 23rd. The stock was bought at an average price of $6.35 per share, with a total value of $700,100.20. Following the completion of the transaction, the chief executive officer directly owned 684,618 shares of the company's stock, valued at approximately $4,347,324.30. The trade was a 19.20% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Carey F. Jaros purchased 40,000 shares of the firm's stock in a transaction dated Tuesday, March 10th. The stock was acquired at an average price of $6.26 per share, with a total value of $250,400.00. Following the purchase, the director directly owned 76,066 shares of the company's stock, valued at approximately $476,173.16. The trade was a 110.91% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last quarter, insiders purchased 899,905 shares of company stock worth $5,396,307 and sold 89,493 shares worth $524,431. 4.50% of the stock is owned by corporate insiders.

About Grocery Outlet

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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