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Things to Know Ahead of Ross Stores' (ROST) Q4 Earnings

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Ross Stores, Inc. ROST is scheduled to release fourth-quarter fiscal 2020 results on Mar 2. This off-price retailer of apparel and home accessories is likely to have witnessed revenue and earnings declines in the to-be-reported quarter.

The Zacks Consensus Estimate for fiscal fourth-quarter earnings of $1.03 per share suggests a decrease of 19.5% from the year-ago quarter’s reported figure of $1.28. However, the consensus mark moved up 0.9% in the past 30 days. Further, the consensus mark for revenues is pegged at $4,305 million, indicating a decline of 2.8% from the figure reported in the year-ago quarter.

In the last reported quarter, the company delivered an earnings surprise of 61.9%. However, it delivered a negative earnings surprise of 669.6%, on average, in the trailing four quarters.

Ross Stores, Inc. Price and EPS Surprise

Ross Stores, Inc. Price and EPS Surprise
Ross Stores, Inc. Price and EPS Surprise

Ross Stores, Inc. price-eps-surprise | Ross Stores, Inc. Quote

Factors to Note

Ross Stores continues to reel under adverse impacts of the COVID-19 situation. Further, it has been witnessing costs related to COVID-19 and lower packaway levels. In its last earnings call, management envisioned COVID-19-related expenses to be significantly higher in the fiscal fourth quarter on a sequential basis due to the impacts of industry-wide capacity constraints and congestion as well as wage and incentive actions in the supply chain and stores. Apart from these, higher freight costs have been concerning.

However, the company has been gaining from strength in Ross’ home category and solid regional performance. Moreover, accelerated gains at dd's DISCOUNTS’ value offerings driven by positive customer response bode well. It also remains on track with its store expansion efforts, which are likely to have provided some cushion to the top line.

Zacks Model

Our proven model does not conclusively predict an earnings beat for Ross Stores this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Ross Stores has a Zacks Rank #3 but an Earnings ESP of -2.28%.

Stocks With Favorable Combination

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

Abercrombie & Fitch ANF currently has an Earnings ESP of +4.93% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Target Corporation TGT currently has an Earnings ESP of +2.66% and a Zacks Rank #2, at present.

DICK’S Sporting Goods DKS currently has an Earnings ESP of +3.70% and a Zacks Rank #2.

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