Investment Rating - The report maintains an "Overweight" rating for Ross Stores with a price target of $141.00, lowered from a previous target of $161.00 [2][19][20]. Core Insights - Ross Stores reported an adjusted 1Q EPS of $1.47, exceeding the Street estimate of $1.44 and within management's guidance of $1.33 to $1.47, driven by flat same-store sales growth and stable operating margins [1][16]. - Management has withdrawn FY25 guidance due to uncertainties surrounding tariff announcements but has provided expectations for 2Q25, forecasting EPS of $1.40 to $1.55, which is below the Street estimate of $1.65 [1][14]. - The company is positioned favorably in the off-price retail sector, with a target of 2,500 stores implying over 10 years of annual square footage growth of 5-6% [10][19]. Financial Performance - For 1Q, Ross Stores achieved flat same-store sales growth, with April showing a notable improvement to +3% compared to previous months [1][16]. - The company reported a 12.2% EBIT margin, above the Street's expectation of 11.9%, and gross margin remained flat year-over-year at 28.2% [1][18]. - The report indicates a revenue growth of 2.6% for 1Q, with net income of $479 million and an adjusted EPS of $1.47 [18]. Future Outlook - Management expects 2Q same-store sales to be flat to +3%, which represents a significant acceleration compared to 1Q [1][14]. - The anticipated operating margin for 2Q is projected to decline to 10.7-11.4%, below the Street's expectation of 12.4% [1][14]. - The report highlights potential headwinds from tariffs, estimating a quarterly EPS impact of $0.11 to $0.16 due to tariff-related costs [7][14]. Valuation Metrics - The revised price target of $141 is based on approximately 22 times the revised 2026 EPS, reflecting a low-double-digit growth algorithm [11][20]. - The report outlines adjusted EPS estimates for FY25 at $6.16, down from a previous estimate of $6.60, with a projected operating margin of 11.4% [2][14]. Market Position - Ross Stores is well-positioned to capture market share from department stores, benefiting from a strong value proposition that offers prices 20-60% lower than competitors [10][19]. - The company has a robust balance sheet, ending 1Q with $3.8 billion in cash against $1.5 billion in debt, supporting its growth strategy [16][18].

Market Performance - The S&P 500 index declined approximately 2.3% this week, while the Dow Jones Industrial Average fell about 2.5% [1] - The Nasdaq index dropped around 2.4%, and the Nasdaq 100 index also saw a decline of about 2.4% [1] - The semiconductor index experienced a significant drop of 4.4%, and the banking index fell approximately 4.2% [1] - The index tracking the seven major U.S. tech stocks decreased by about 2.8%, and the "Trump Tariff Losers Index" fell by 5% [1] - Small-cap stocks declined by 3.3%, while the biotechnology index saw a slight increase of 0.4% [1] Daily Performance - On Friday, the S&P 500 index initially closed down by 0.6%, with the technology sector dropping 1.2% [1] - Other sectors such as telecommunications, consumer discretionary, and financials saw declines of up to 0.9%, while the utilities sector rose by 1.2% [1] - The Nasdaq 100 index initially closed down by 0.9%, with notable declines in stocks like Workday (down 12.4%), Copart (down 11.6%), and Ross Stores (down 9.9%) [1] - Conversely, stocks such as CrowdStrike (up 2.9%), Grail (up 3.6%), and Intuit (up 8.2%) experienced gains [1]

Ross Stores Inc ROST shares tanked after the company on Thursday reported its first-quarter results.The announcement came amid an exciting earnings season. Here are some key analyst takeaways.JPMorgan On Ross StoresAnalyst Matthew Boss reiterated an Overweight rating, while slashing the price target from $161 to $141.Ross Stores reported its first-quarter earnings at $1.47 per share, beating Street expectations of $1.44 per share, and flat same-store-sales growth, better than estimates of a 0.6% decline, Bo ...

Core Insights - The article compares Dollar General (DG) and Ross Stores (ROST) to determine which stock is more attractive to value investors [1] Valuation Metrics - Both DG and ROST currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [3] - DG has a forward P/E ratio of 18.04, while ROST has a forward P/E of 23.69, suggesting DG is more attractively priced [5] - The PEG ratio for DG is 2.61, compared to ROST's 2.96, indicating DG may offer better value relative to its expected earnings growth [5] - DG's P/B ratio is 2.99, significantly lower than ROST's P/B of 9.12, further supporting DG's valuation advantage [6] - Based on these metrics, DG holds a Value grade of A, while ROST has a Value grade of C, indicating DG is the superior value option at this time [6]

Group 1 - Ross Stores reported quarterly earnings of $1.47 per share, exceeding the Street estimate of $1.44, with quarterly revenue of $4.99 billion, surpassing the consensus estimate of $4.97 billion [1] - The company provided second-quarter GAAP EPS guidance in the range of $1.40 to $1.55, which is below the analyst estimate of $1.65 [1][2] - CEO Jim Conroy noted that despite a slow start to the spring selling season, sales performance improved month over month, with an operating margin of 12.2% remaining flat year-over-year [2] Group 2 - Following the earnings announcement, analysts adjusted their price targets for Ross Stores, with JP Morgan lowering it from $161 to $141 and Evercore ISI Group from $170 to $160 [3][8] - Morgan Stanley reduced its price target from $128 to $126, while Loop Capital lowered it from $175 to $170, and Barclays cut it from $157 to $156 [8]

Core Insights - Ross Stores, Inc. reported strong first-quarter results for fiscal 2024, with both net sales and earnings exceeding expectations and showing year-over-year growth [1][4][5] Financial Performance - Earnings per share reached $1.47, surpassing the Zacks Consensus Estimate of $1.43 and slightly above the previous year's $1.46 [4] - Total sales amounted to $4,985 million, reflecting a 3% increase year over year and exceeding the Zacks Consensus Estimate of $4,970 million [5] - The cost of goods sold (COGS) was $3.6 billion, up 2.6% year over year, with COGS as a percentage of sales at 71.8%, a slight decrease of 10 basis points from the previous year [6] - Gross profit increased by 2.6% year over year to $1.4 billion, with a gross margin of 28.2%, up 10 basis points from the year-ago quarter [7] - Operating income rose 2.6% year over year to $606.5 million, maintaining an operating margin of 12.2% [7] Cash and Shareholder Returns - The company ended the quarter with cash and cash equivalents of $3.7 billion and long-term debt of $1 billion, with total shareholders' equity at $5.5 billion [9] - In the first quarter, Ross Stores repurchased 2 million shares for $263 million, part of a $2.1 billion buyback program [10] Expansion Plans - Ross Stores opened 16 new Ross stores and three dd's DISCOUNTS locations in the first quarter, with plans to open approximately 90 new stores in total for the year [11] Future Outlook - The company is cautious about the near term due to macroeconomic uncertainties, particularly inflation and trade policies, leading to the withdrawal of full-year sales and earnings guidance [12][13] - For the second quarter, comparable store sales are expected to be flat to up 3%, with earnings per share projected between $1.40 and $1.55, reflecting a potential negative impact from tariffs [14]

Group 1: Ross Stores, Inc. - Ross Stores reported quarterly earnings of $1.47 per share, beating the Street estimate of $1.44, with quarterly revenue of $4.99 billion, surpassing the consensus estimate of $4.97 billion [1][2] - The company issued second-quarter GAAP EPS guidance in the range of $1.40 to $1.55, which is below the analyst estimate of $1.65 [2] - Following the guidance, Ross Stores shares fell 11.2% to $135.00 in pre-market trading [2] Group 2: Other Companies - Bicara Therapeutics Inc. shares dipped 20.2% to $12.50 after announcing mixed results from a phase 1/1b trial for ficerafusp alfa [4] - Deckers Outdoor Corporation shares fell 16% to $105.90 after reporting fourth-quarter financial results and expecting first-quarter revenue of $890 million to $910 million, below estimates of $925.86 million [4] - Gyre Therapeutics, Inc. shares fell 14.4% to $9.60 due to a $20.0 million public offering of common stock [4] - Hallador Energy Company shares tumbled 9.7% to $17.00 in pre-market trading [4] - Xerox Holdings Corporation shares dipped 9.6% to $4.62 after reducing its quarterly dividend from $0.125 per share to $0.025 [4] - MINISO Group Holding Limited shares fell 8.5% to $20.30 following third-quarter results [4] - Workday, Inc. shares declined 6.5% to $254.40 after issuing second-quarter sales guidance below estimates [4] - Navitas Semiconductor Corporation shares dipped 6.3% to $4.73 after a significant jump of 164% on Thursday due to collaboration with Nvidia [4]

Core Insights - The article does not provide specific insights or analysis regarding any companies or industries, focusing instead on disclaimers and disclosures [1][2] Group 1 - There is no stock, option, or similar derivative position in any of the companies mentioned [1] - The article expresses personal opinions and is not receiving compensation from any company mentioned [1] - The views expressed may not reflect those of Seeking Alpha as a whole [2] Group 2 - Seeking Alpha is not a licensed securities dealer, broker, or investment adviser [2] - Analysts include both professional and individual investors who may not be licensed or certified [2]

Market Overview - Market indexes showed resilience against high bond yields, with the 30-year bond yield at +5.05%, the highest in 18 years, but moderated from previous spikes [1] - Major indexes finished flat, with the Dow, S&P 500, and Russell 2000 remaining unchanged, while the Nasdaq closed up +53 points (+0.28%) [2] - Despite being in the red over the past five trading days, the indexes have seen double-digit gains over the past month [2] Quarterly Earnings Summary - **Workday (WDAY)**: Reported Q1 earnings of $2.23 per share on $2.4 billion in sales, beating previous figures of $1.99 per share and $2.22 billion. However, shares fell -5% due to steady guidance and reduced capex spending [3] - **Deckers Outdoor (DECK)**: Earnings of $1.00 per share exceeded the Zacks consensus of 57 cents, with revenues of $1.02 billion surpassing expectations of $988.6 million. Shares dropped -11% due to lower-than-expected guidance for the current quarter and full-year guidance held back due to tariff issues [3] - **Intuit (INTU)**: Surpassed earnings expectations with $11.65 per share against a consensus of $10.89, and revenues of $7.75 billion exceeding the $7.54 billion forecast. Shares rose +5% following a significant increase in next-quarter guidance driven by Credit Karma growth [4] - **Ross Stores (ROST)**: Beat earnings estimates by 4 cents with $1.47 per share on $4.98 billion in revenues, slightly above consensus. Same-store sales were flat but improved from a projected decline. Shares fell -9% due to lower next-quarter earnings guidance attributed to tariff pressures [5] - **AutoDesk (ADSK)**: Reported Q1 earnings of $2.29 per share, beating the anticipated $2.14, with revenues of $1.63 billion slightly above the forecast of $1.61 billion. Shares gained +5% due to positive next-quarter guidance [6]

Group 1 - Ross Stores reported quarterly earnings of $1.47 per share, exceeding the Zacks Consensus Estimate of $1.43 per share, and showing a slight increase from $1.46 per share a year ago, resulting in an earnings surprise of 2.80% [1] - The company achieved revenues of $4.98 billion for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 0.35% and reflecting a year-over-year increase from $4.86 billion [2] - Over the last four quarters, Ross Stores has consistently surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Group 2 - The stock's immediate price movement will largely depend on management's commentary during the earnings call and the sustainability of earnings expectations [3][4] - Ross Stores shares have increased approximately 0.9% since the beginning of the year, contrasting with a decline of 0.6% in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $1.64 on revenues of $5.49 billion, and for the current fiscal year, it is $6.43 on revenues of $21.93 billion [7] Group 3 - The estimate revisions trend for Ross Stores is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The Retail - Discount Stores industry is currently ranked in the bottom 39% of over 250 Zacks industries, suggesting that the industry outlook may impact stock performance [8] Group 4 - Another company in the same industry, Costco, is expected to report quarterly earnings of $4.25 per share, reflecting a year-over-year change of +12.4%, with revenues anticipated to be $63.14 billion, up 7.9% from the previous year [9][10]