Five Below Analysts Increase Their Forecasts Following Upbeat Q3 Earnings

Five Below Inc (NASDAQ:FIVE) reported better-than-expected financial results for the third quarter after the market close on Wednesday.

Five Below reported third-quarter revenue of $1.04 billion, beating estimates of $983.07 million, per Benzinga Pro. The retailer posted adjusted earnings of 68 cents per share, easily beating estimates of 24 cents per share.

"We are thrilled to report third quarter results that surpassed our expectations, marking our second consecutive quarter of over $1 billion in sales and robust double-digit same-store sales growth," said Winnie Park, CEO of Five Below.

Five Below guided for fourth-quarter revenue of $1.58 billion to $1.61 billion, and adjusted earnings of $3.36 to $3.54 per share. Analysts are anticipating revenue to go $1.56 billion and adjusted earnings of $3.10 per share.

The company raised its full-year revenue guidance from a range of $4.44 billion to $4.52 billion to a new range of $4.63 billion to $4.65 billion versus estimates of 4.57 billion. Five Below also raised its full-year adjusted earnings outlook from a range of $4.76 to $5.16 per share to an updated range of $5.71 to $5.89 per share versus estimates of $5.18 per share.

Five Below shares fell 0.2% to trade at $162.84 on Thursday.

These analysts made changes to their price targets on Five Below following earnings announcement.

• Telsey Advisory Group analyst Joseph Feldman maintained Five Below with an Outperform rating and raised the price target from $170 to $195.
• Mizuho analyst David Bellinger maintained Five Below with a Neutral and raised the price target from $160 to $165.
• Wells Fargo analyst Edward Kelly maintained the stock with an Overweight rating and raised the price target from $175 to $190.
• Barclays analyst Seth Sigman maintained Five Below with an Equal-Weight rating and raised the price target from $135 to $160.
• UBS analyst Michael Lasser maintained Five Below with a Buy and raised the price target from $204 to $210.
• Evercore ISI Group analyst Michael Montani maintained Five Below with an In-Line rating and raised the price target from $175 to $180.

Considering buying FIVE stock? Here’s what analysts think:

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