NEW YORK (TheStreet) -- Shares of Five Below (FIVE) - Get Report were sliding 6.31% to $41.75 in after-hours trading on Wednesday after the Philadelphia discount retailer reported downbeat estimates for the third quarter.

For the third quarter, Five Below expects earnings per share in the range of 9 cents to 10 cents on revenue between $199 to $202 million. Analysts are looking for earnings of 10 cents per share on revenue of $203.9 million for the period.

For the full year, the company projects to earn between $1.28 per share and $1.32 per share on sales of $1 billion to $1.01 billion. Five Below had previously estimated earnings per share between $1.27 and $1.31 on revenue in the range of $995 million to $1 billion.

Wall Street is expecting earnings of $1.31 per share on revenue of $1.01 billion for 2016.

Additionally, Five Below is modeling an increase of 3% in same-store sales for the year.

In the second quarter, Five Below posted earnings of 18 cents per diluted share, which was higher than analysts' estimates of 17 cents per share.

Revenue was up 20.8% year-over-year to $220.1 million, which topped Wall Street's projections of $219.59 million for the quarter.

Same-store sales increased by 3.1% in the period.

CEO Joel Anderson said the company had "notable" developments in the quarter such as a launch of an e-commerce platform.

More than 2.4 million shares were traded today vs. the 30-day average of roughly 839,000 shares.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

TheStreet Ratings rated this stock as a "buy" with a ratings score of B.

The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

You can view the full analysis from the report here: FIVE

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