Retail Interest Spikes After Five Below Reports Q4 Results Above Estimates, Strong Forecast
Synopsis
On Stocktwits, the sentiment for the stock swung to 'extremely bullish' from 'extremely bearish', and chatter rose a whopping 2,100% from a day prior.
Retail investors gave a decisive vote of confidence to Five Below, Inc. (FIVE) on Wednesday after the discount retailer reported better-than-expected fourth-quarter (Q4) results and forecast a strong current quarter.
Shares of Five Below gained nearly 13% in after-hours trading, which, if they hold in Thursday's session, would mark the stock's best performance since December 2022.
On Stocktwits, the sentiment for the stock swung to 'extremely bullish' from 'extremely bearish' a day ago, with 'extremely high' message volume.
The chatter rose a whopping 2,100% from a day prior and 5,033% from a week ago.
Five Below sells trendy products for $5 or less, targeting teens and tweens. It operates over 1,700 stores, offering toys, tech accessories, beauty items, and seasonal goods.
The company reported net sales of $1.39 billion for the quarter ended Feb. 1, up from $1.34 billion a year earlier and above a consensus estimate of $1.38 billion from FactSet.
Adjusted earnings per share came in at $3.48, also above a $3.38 estimate. The figure was $3.65 in the year-ago quarter.
For Q1, the revenue projection of $905 million to $925 million, and EPS guidance of $0.50 and $0.61, were above Wall Street estimates of $897.8 million and $0.48, respectively.
CEO Winnie Park said the company's focus on affordability and product curation was drawing customers.
A bullish user said the stock could cross the $90 mark on Thursday and is unlikely to fall below $70 anytime soon.
Yet, another cautioned that the company's below-expectation annual outlook might weigh on the stock.
Currently, 13 of 23 analysts have a 'hold' rating on the stock and eight recommend 'buy' or higher, with an average target price of $111.56, according to Koyfin data.
Shares ended Wednesday at $75.59, down 28% year to date.
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