Ross Stores (NASDAQ:ROST) Releases Q2 Earnings Guidance

Ross Stores (NASDAQ:ROST) updated its second quarter earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of $1.43-1.49 for the period, compared to the consensus estimate of $1.46. Ross Stores also updated its FY25 guidance to $5.79-5.98 EPS.

Analysts Set New Price Targets

A number of research firms have commented on ROST. JPMorgan Chase & Co. increased their price objective on shares of Ross Stores from $150.00 to $163.00 and gave the company an overweight rating in a research note on Wednesday, March 6th. Morgan Stanley dropped their target price on shares of Ross Stores from $161.00 to $159.00 and set an overweight rating on the stock in a report on Monday, May 6th. Robert W. Baird increased their target price on shares of Ross Stores from $145.00 to $162.00 and gave the stock an outperform rating in a report on Wednesday, March 6th. Loop Capital increased their target price on shares of Ross Stores from $150.00 to $170.00 and gave the stock a buy rating in a report on Wednesday, March 6th. Finally, Evercore ISI increased their target price on shares of Ross Stores from $155.00 to $165.00 and gave the stock an outperform rating in a report on Friday, February 23rd. Four equities research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company’s stock. According to MarketBeat.com, Ross Stores has a consensus rating of Moderate Buy and an average price target of $155.11.

Ross Stores Price Performance

Shares of ROST stock traded up $0.35 during midday trading on Thursday, reaching $131.86. 3,607,029 shares of the company were exchanged, compared to its average volume of 2,136,126. Ross Stores has a 12 month low of $100.66 and a 12 month high of $151.12. The company has a market cap of $44.40 billion, a P/E ratio of 23.65, a PEG ratio of 1.99 and a beta of 1.06. The company’s 50 day moving average price is $137.19 and its two-hundred day moving average price is $137.46. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.24 and a current ratio of 1.77.

Ross Stores (NASDAQ:ROST) last released its quarterly earnings results on Tuesday, March 5th. The apparel retailer reported $1.82 EPS for the quarter, topping analysts’ consensus estimates of $1.63 by $0.19. The company had revenue of $6.02 billion for the quarter, compared to the consensus estimate of $5.81 billion. Ross Stores had a net margin of 9.20% and a return on equity of 41.15%. Ross Stores’s revenue was up 15.5% on a year-over-year basis. During the same period in the previous year, the firm earned $1.31 EPS. On average, sell-side analysts expect that Ross Stores will post 5.88 earnings per share for the current year.

Ross Stores Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, June 28th. Stockholders of record on Tuesday, June 11th will be paid a $0.3675 dividend. This represents a $1.47 annualized dividend and a dividend yield of 1.11%. Ross Stores’s dividend payout ratio is currently 26.44%.

Ross Stores declared that its Board of Directors has initiated a stock buyback program on Tuesday, March 5th that allows the company to repurchase $2.10 billion in outstanding shares. This repurchase authorization allows the apparel retailer to buy up to 4.3% of its shares through open market purchases. Shares repurchase programs are generally a sign that the company’s board of directors believes its stock is undervalued.

Insider Transactions at Ross Stores

In other news, CMO Brian R. Morrow sold 10,734 shares of Ross Stores stock in a transaction that occurred on Wednesday, March 27th. The shares were sold at an average price of $146.00, for a total value of $1,567,164.00. Following the transaction, the chief marketing officer now directly owns 62,711 shares of the company’s stock, valued at $9,155,806. The transaction was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. In related news, Director Larree M. Renda sold 4,168 shares of the business’s stock in a transaction that occurred on Thursday, March 28th. The shares were sold at an average price of $147.89, for a total transaction of $616,405.52. Following the transaction, the director now directly owns 3,166 shares of the company’s stock, valued at $468,219.74. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CMO Brian R. Morrow sold 10,734 shares of the business’s stock in a transaction that occurred on Wednesday, March 27th. The shares were sold at an average price of $146.00, for a total transaction of $1,567,164.00. Following the transaction, the chief marketing officer now directly owns 62,711 shares in the company, valued at $9,155,806. The disclosure for this sale can be found here. Insiders have sold 71,097 shares of company stock valued at $10,396,178 in the last quarter. Insiders own 2.10% of the company’s stock.

Ross Stores Company Profile

Ross Stores, Inc, together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brand names in the United States. Its stores primarily offer apparel, accessories, footwear, and home fashions. The company's Ross Dress for Less stores sell its products at department and specialty stores to middle income households; and dd's DISCOUNTS stores sell its products at department and discount stores for households with moderate income.