Shares of Ross Stores (NASDAQ:ROST) jumped 6.3% in after-hours trading yesterday after posting a healthy third-quarter Fiscal 2023 beat. The discount department chain posted a diluted profit of $1.33 per share, significantly beating analysts’ estimates of $1.22 per share. In the prior-year quarter, ROST posted diluted earnings of $1.00 per share.
Similarly, revenues grew 7.7% year-over-year to $4.92 billion and surpassed the consensus of $4.84 billion. Further, comparable store sales rose 5% compared to the year-ago quarter. Prior to the results, the company’s board also announced a regular quarterly dividend of $0.34 per share. This reflects a current yield of 1.05%.
Going forward, Ross Stores reiterated its Q4FY23 guidance. The company cited the uncertainty related to geopolitical conditions, sticky inflation, and unfavorable macro factors for retaining its outlook. For Q4, ROST expects to earn diluted earnings in the range of $1.58 to $1.64 per share (excluding a one-time charge of $0.02 per share). For full-year Fiscal 2023, diluted earnings are pegged between $5.30 and $5.36 per share.
Is Ross Stores a Good Stock to Buy?
With 16 Buys, two Holds, and one Sell rating, Ross Stores stock commands a Strong Buy consensus rating. On TipRanks, the average Ross Stores price target of $130.53 implies 8.6% upside potential from current levels. Year-to-date, ROST stock has gained 4.7%.
