What to Expect When Ross Stores Posts Q3 Results

Wall Street is expecting Ross Stores (ROST) to report an increase in third-quarter earnings and revenue year-over-year after Thursday's market close.

Analysts surveyed by FactSet are looking for adjusted earnings of 56 cents per share on revenue of $2.96 billion. During the same quarter last year, the Dublin, CA-based off-price retailer earned 53 cents per share on revenue of $2.78 billion.

Comparable-store sales are forecast to rise 2.6% during the most recent period, according to FactSet, compared 3% growth a year ago.

Ross delivered better-than-expected earnings and sales growth in the 2015 third quarter, driven by better merchandise margin, higher traffic and an increase in average basket size, Goldman Sachs said.

"Despite a tough 3Q comparison, we continue to believe ROST is well positioned to maintain momentum in the second half of the year. Warm weather in 4Q15 and 1Q16 has provided the company with high quality inventory early in the season and presents an easy comparison," the firm wrote in a recent note. Goldman has "neutral" rating on the stock, 

Goldman also mentioned that the impact from hurricanes in the southeast may dampen the company's third-quarter comparable-store sales given its relatively higher exposure in the region. Tanger Factory Outlet Centers (SKT) said that Hurricane Hermine, which hit over Labor Day weekend, negatively impacted reported company-wide tenant sales by 130 basis points, the firm added.

Yesterday, Ross declared a quarterly dividend of $0.135 per share payable on December 30 to stockholders of record as of December 7.

The company's stock was higher by 0.25% to $64.02 in late-morning trading on Thursday. Shares are up more than 19% year-to-date.

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