Off-price retail company Burlington Stores (NYSE:BURL) will be announcing earnings results tomorrow before the bell. Here’s what you need to know.
Burlington beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $2.47 billion, up 13.4% year on year. It was an exceptional quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.
Is Burlington a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Burlington’s revenue to grow 11.7% year on year to $2.56 billion, in line with the 12.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.55 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Burlington has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Burlington’s peers in the general merchandise retail segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Ross Stores delivered year-on-year revenue growth of 3%, missing analysts’ expectations by 1.5%, and TJX reported revenues up 6%, topping estimates by 0.8%. Ross Stores traded up 2.2% following the results while TJX’s stock price was unchanged.
Read our full analysis of Ross Stores’s results here and TJX’s results here.
There has been positive sentiment among investors in the general merchandise retail segment, with share prices up 4.1% on average over the last month. Burlington is up 13.8% during the same time and is heading into earnings with an average analyst price target of $312.34 (compared to the current share price of $288.22).
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