Grocery Outlet Holding Corp. (GO) Beats Q2 Earnings and Revenue Estimates

Core Insights - Grocery Outlet Holding Corp. reported quarterly earnings of $0.25 per share, exceeding the Zacks Consensus Estimate of $0.20 per share, but down from $0.32 per share a year ago [1] - The company achieved revenues of $1.13 billion for the quarter, surpassing the Zacks Consensus Estimate by 1.75% and up from $1.01 billion year-over-year [3] Earnings Performance - The earnings surprise for the quarter was 25%, following a previous quarter where the company reported earnings of $0.09 per share against an expectation of $0.18, resulting in a surprise of -50% [2] - Over the last four quarters, Grocery Outlet has exceeded consensus EPS estimates three times [2] Stock Performance - Grocery Outlet shares have declined approximately 32.2% since the beginning of the year, contrasting with the S&P 500's gain of 8.7% [4] - The current Zacks Rank for Grocery Outlet is 4 (Sell), indicating expectations of underperformance in the near future [7] Future Outlook - The consensus EPS estimate for the upcoming quarter is $0.33 on revenues of $1.11 billion, and for the current fiscal year, it is $0.93 on revenues of $4.35 billion [8] - The estimate revisions trend for Grocery Outlet has been unfavorable ahead of the earnings release, which may impact future stock performance [7] Industry Context - The Consumer Products - Staples industry, to which Grocery Outlet belongs, is currently ranked in the bottom 25% of over 250 Zacks industries, suggesting potential challenges ahead [9] - The performance of Grocery Outlet may be influenced by the overall outlook for the industry, as research indicates that top-ranked industries outperform lower-ranked ones significantly [9]