Shares of Five Below (FIVE) - Get Five Below, Inc. Report jumped Friday after the kids-focused discount retailer swung to a first-quarter profit from a year-earlier loss and some analysts were bullish on its growth prospects.
Shares of Five Below at last check were 3% higher at $183.28.
GAAP earnings of 88 cents a share compared with a loss of 91 cents a share in the year-earlier period and topped the consensus analyst estimate compiled by FactSet of 65 cents a share.
Revenue of $597.8 million at the Philadelphia company nearly tripled from a year earlier and beat the estimate of $553.4 million.
Comparable sales more than doubled (up 162%) from a year earlier.
Analysts at Jefferies maintained their buy rating and $300 price target. "FIVE brand awareness continues to grow and [long-term] mature sales levels will continue to rise," the investment firm said.
RBC Capital also affirmed an outperform rating while raising its price to $234 a share from $225. "New-store productivity continues to climb and the company still has material unit-expansion potential," the firm wrote.
Telsey Advisory Group rates the company outperform and increased its price target to $240 from $230: "We remain encouraged by the strong business momentum at Five Below and its ability to execute at a high level."
KeyBanc Capital maintained its sector-weight rating. Five Below's long-term outlook "remains compelling" and the company is "one of the more intriguing growth stories in our coverage," the firm said.
For the second quarter, the company expects earnings between $1.01 and $1.13 a share, compared with the FactSet-derived consensus estimate of 73 cents.
Revenue is expected to range $640 million to $660 million vs. the estimate of $584 million.