Five Below Analysts Break Down Q3 Earnings: ‘Plenty of Potential for Upside’

Five Below Analysts Break Down Q3 Earnings: ‘Plenty of Potential for Upside’
A Five Below store in Lake City, Fla., on Aug. 26, 2017. (Michael Rivera/[CC BY-SA 4.0 (ept.ms/2j9VWgB)])
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Shares of Five Below Inc. traded higher by 2 percent on Thursday after the company reported better-than-expected earnings and revenue numbers for the third quarter.

Earnings

Five Below reported third-quarter adjusted earnings per share (EPS) of 43 cents on revenue of $607.6 million. Both numbers topped consensus analyst estimates of 29 cents and $563.9 million. Revenue was up 27.3 percent from a year ago.

Operating income was up 75 percent to $42 million in the third quarter. The company’s store count was also up 15.2 percent from a year ago to 1,173total stores in 40 different U.S. states.