Five Below beats Wall Street estimates in the fiscal fourth quarter

By: Wajeeh Khan
Wajeeh Khan
Wajeeh is a News Reporter at Invezz covering the European, Asian and North America stock markets. Wajeeh has 5… read more.
on Mar 17, 2021
  • Five Below beats Wall Street estimates in the fiscal fourth quarter.
  • The U.S. retailer forecasts up to £400.95 million of revenue in Q1.
  • Five Below jumped about 6% in extended trading on Wednesday.

Five Below Inc. (NASDAQ: FIVE) published its earnings report for the fiscal fourth quarter on Wednesday that beat Wall Street estimates, despite the ongoing Coronavirus pandemic that has so far infected more than 30 million people in the United States and caused over half a million deaths.

Five Below shares that you can conveniently trade online via several apps were reported about 6% up in after-hours trading on Wednesday. The stock is now exchanging hands at £148.21 per share. Five Below had started the year at a per-share price of £119.63.

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Five Below’s Q4 financial results versus analysts’ estimates

Five Below said that its net income in the fourth quarter printed at £88.71 million that translates to £1.58 per share. In the same quarter last year, its net income was capped at a lower £79.04 million, or £1.41 per share.

The discount retailer said that it generated £614.67 million of revenue in Q4 versus the year-ago figure of £491.95 million. In comparison, experts had called for £601.21 million of revenue in the recent quarter. Their estimate for per-share earnings stood at £1.51.

For the full financial year, Five Below reported £1.40 billion of revenue. Its full-year net income registered at £88.35 million, or £1.58 per share. In separate news from the U.S., Lumentum raised its takeover offer for Coherent to £4.94 billion.

Five Below’s guidance for the fiscal first quarter

For the fiscal first quarter, Five Below now forecasts its revenue to fall between £386.63 million and £400.95 million. Analysts, on the other hand, are calling for a much lower £302.50 million of revenue for the American company in Q1.

CEO Joel Anderson commented on the financial report on Wednesday and said:

“We closed out an unprecedented year with fourth-quarter results that were even stronger than we expected, highlighted by a record fourth-quarter comparable sales increase of 13.8% with broad-based strength across our worlds. I am so grateful for our outstanding teams, who executed seamlessly against our key priorities, with an unwavering commitment to health and safety, maintaining financial discipline and always placing the customer at the centre of our decision-making.”

Five Below performed largely upbeat in the stock market last year with an annual gain of close to 40%. At the time of writing, the American chain of speciality discount stores is valued at £7.84 billion and has a price to earnings ratio of 100.29.

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