Five Below, Inc. FIVE delivered better-than-expected top and bottom lines for the fifth and tenth straight quarter, respectively, when it reported fourth-quarter fiscal 2017 results. However, in spite of solid results, shares of this Zacks Rank #3 (Hold) company came under pressure following management’s fiscal 2018 guidance that came below analysts’ expectations. The stock fell more than 2% during the trading session on Mar 21.

Nevertheless, we note that the stock has surged 28.3% in the past six months compared with the industry’s meager growth of 0.9%.

Let’s Delve Deep

Adjusted earnings of $1.18 per share came a penny ahead of the Zacks Consensus Estimate and also surged 31.1% year over year. Additionally, the bottom line exceeded the company’s guided range of $1.09-$1.16 per share. The uptick can be attributable to higher sales and operating margin expansion.

Net sales grew 30.1% to $504.8 million from the year-ago quarter and also came ahead of the Zacks Consensus Estimate of $501.5 million. Further, the top line surpassed the company’s guided range of $491-$503 million. The improvement was due to solid comparable sales growth and new store openings. Net sales in the 53rd week were $15.7 million, while excluding the same net sales rose 26%.

Comparable sales increased 5.9% in the reported quarter and came almost in line with the upper end of the previously provided guidance of 4-6%. This was primarily driven by 4% growth in comp transactions.

Five Below, Inc. Price, Consensus and EPS Surprise

Five Below, Inc. Price, Consensus and EPS Surprise | Five Below, Inc. Quote