Ollie's Bargain Outlet stock rallied early Wednesday before paring gains after the discount retailer surprised Wall Street with better-than-expected third-quarter earnings and revenue, leading the company to raise its full-year sales and profit outlook.
The Harrisburg, Pa.-based discount retailer reported Q3 earnings growing 38% to 51 cents per share while revenue jumped 15% to $480 million. Comparable store sales increased 7%. Ahead of earnings, analysts had predicted EPS of 45 cents and revenue totaling $469 million.
Ollie's Bargain Outlet also opened 23 new stores in Q3, ending the quarter with 505 stores in 30 states, a year-over-year increase in store count of 9.1%.
Ollie's Bargain Outlet Stock: Outlook
Meanwhile, OLLI now expects 2023 sales of $2.097 billion-$2.104 billion, up from its previous $2.076 billion-$2.091 billion forecast. The company predicts full-year EPS around $2.77-$2.83, an increase from OLLI's prior $2.65-$2.74 view.
"Consumers remain under pressure and are looking for ways to save money on branded merchandise they need and want in their homes," Chief Executive John Swygert said Wednesday in the earnings release.
OLLI stock advanced 4% early before ending Wednesday's market trade up just a fraction at 76.30, making shares actionable on a rebound from their 50-day moving average. Currently, MarketSmith analysis shows no clear entry.
On Tuesday, OLLI edged down a fraction to 76.25. The discount retailer stock has gained 63% in 2023.
OLLI stock has a 91 Composite Rating out of 99. The stock also has a 90 Relative Strength Rating. The EPS Rating for OLLI stock is 89.
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