Ross Stores (NASDAQ:ROST) Posts Earnings Results, Beats Expectations By $0.12 EPS

Key Points

• Ross Stores reported quarterly EPS of $2.06, beating analysts’ consensus estimate of $1.94 by $0.12. The company posted a 9.74% net margin and a 38.42% return on equity.
• Shares fell $5.70 to $228.99 following the report despite the earnings beat. Analysts maintain a “Moderate Buy” consensus, with an average price target of $244.76, though ratings range from “equal weight” to “buy.”
• Ross Stores declared a quarterly dividend of $0.445 per share, payable September 30 to shareholders of record September 8. The payment represents an annualized dividend of $1.78 and a yield of approximately 0.8%.

Ross Stores (NASDAQ:ROST - Get Free Report) released its quarterly earnings results on Thursday. The apparel retailer reported $2.06 earnings per share for the quarter, beating analysts' consensus estimates of $1.94 by $0.12, Zacks reports. Ross Stores had a net margin of 9.74% and a return on equity of 38.42%.

Ross Stores Price Performance

Shares of ROST stock traded down $5.70 during trading hours on Thursday, reaching $228.99. The company's stock had a trading volume of 4,893,380 shares, compared to its average volume of 2,717,548. The firm's 50 day simple moving average is $234.03 and its 200-day simple moving average is $221.46. The company has a market capitalization of $73.46 billion, a price-to-earnings ratio of 31.98, a PEG ratio of 2.64 and a beta of 0.86. Ross Stores has a fifty-two week low of $143.39 and a fifty-two week high of $257.00. The company has a quick ratio of 0.94, a current ratio of 1.54 and a debt-to-equity ratio of 0.12.

Ross Stores Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 8th will be paid a dividend of $0.445 per share. The ex-dividend date is Tuesday, September 8th. This represents a $1.78 annualized dividend and a yield of 0.8%. Ross Stores's dividend payout ratio is presently 24.86%.

Hedge Funds Weigh In On Ross Stores

A number of institutional investors have recently modified their holdings of ROST. Virtus Advisers LLC bought a new stake in shares of Ross Stores during the 4th quarter worth $32,000. Quarry LP grew its position in Ross Stores by 1,124.0% in the fourth quarter. Quarry LP now owns 306 shares of the apparel retailer's stock valued at $55,000 after acquiring an additional 281 shares during the last quarter. Kemnay Advisory Services Inc. acquired a new position in Ross Stores during the fourth quarter worth about $60,000. Quattro Advisors LLC bought a new position in shares of Ross Stores in the fourth quarter worth about $70,000. Finally, Johnson Financial Group Inc. boosted its stake in shares of Ross Stores by 189.1% in the 4th quarter. Johnson Financial Group Inc. now owns 396 shares of the apparel retailer's stock valued at $71,000 after purchasing an additional 259 shares in the last quarter. Institutional investors and hedge funds own 86.86% of the company's stock.

Key Ross Stores News

Here are the key news stories impacting Ross Stores this week:

• Positive Sentiment: Ross Stores’ first-quarter performance provided a strong foundation, with the company posting its strongest comparable-store sales growth in its 40-year history. Investors are looking for evidence that the momentum is continuing into the second quarter. Live: Will Ross Crush Q2 Earnings Tonight After Its Record Q1?
• Positive Sentiment: The board declared a regular quarterly dividend of $0.445 per share, payable September 30 to shareholders of record September 8. The dividend supports investor returns, although the annualized yield is modest at approximately 0.8%. Ross Stores Announces Quarterly Dividend
• Neutral Sentiment: Analysts generally expect second-quarter earnings per share of roughly $1.94–$1.95 and revenue of about $6.15–$6.16 billion. The company also opened 47 new stores, highlighting ongoing expansion. Ross Stores Earnings Preview
• Negative Sentiment: Shares were trading near their 52-week high before the report, leaving less room for disappointment. Options markets implied a potential move of about 6.94% around earnings, signaling elevated volatility and concern that results or guidance may not exceed already-optimistic expectations. Retail Earnings Implied Moves

Analyst Ratings Changes

A number of research firms have commented on ROST. Wells Fargo & Company lowered Ross Stores from an "overweight" rating to an "equal weight" rating and set a $245.00 price objective on the stock. in a research note on Tuesday, June 23rd. Telsey Advisory Group increased their target price on Ross Stores from $265.00 to $280.00 and gave the stock an "outperform" rating in a report on Friday, August 14th. Sanford C. Bernstein restated a "market perform" rating and issued a $230.00 price target on shares of Ross Stores in a research report on Friday, May 22nd. Weiss Ratings reaffirmed a "buy (b)" rating on shares of Ross Stores in a research note on Monday, July 6th. Finally, Truist Financial upped their price objective on shares of Ross Stores from $270.00 to $290.00 and gave the stock a "buy" rating in a research report on Friday, May 22nd. Sixteen equities research analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $244.76.

About Ross Stores

Ross Stores, Inc NASDAQ: ROST is an American off‑price retailer headquartered in Dublin, California, that operates the Ross Dress for Less and dd's DISCOUNTS store formats. The company sells a broad assortment of apparel, footwear, home fashions, accessories and other soft goods, positioning itself as a value-oriented destination for brand‑name and fashion merchandise at reduced prices.

Ross's business model centers on opportunistic buying of excess inventory, closeouts, cancelled orders and overstocks from manufacturers, department stores and other suppliers.

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