Ross Stores (ROST) Expected to Beat Earnings Estimates: Should You Buy?

Core Viewpoint - Ross Stores (ROST) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended April 2025, with the consensus outlook indicating a significant factor that could influence its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for May 22, 2025, with expectations that better-than-expected results could lead to a stock price increase, while disappointing results may cause a decline [2]. - The consensus estimate for quarterly earnings is $1.43 per share, reflecting a year-over-year decrease of 2.1%, while revenues are projected to be $4.97 billion, representing a 2.3% increase from the previous year [3]. Estimate Revisions - Over the last 30 days, the consensus EPS estimate has been revised 0.44% higher, indicating a collective reassessment by analysts regarding the company's earnings prospects [4]. - The Most Accurate Estimate for Ross Stores is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.27%, suggesting a likelihood of beating the consensus EPS estimate [10][11]. Earnings Surprise History - In the last reported quarter, Ross Stores exceeded the expected earnings of $1.65 per share by delivering $1.79, achieving a surprise of +8.48% [12]. - The company has successfully beaten consensus EPS estimates in all of the last four quarters [13]. Industry Comparison - In comparison, Target (TGT), another player in the discount retail sector, is expected to report earnings of $1.68 per share for the same quarter, indicating a year-over-year decline of 17.2%, with revenues projected at $24.45 billion, down 0.3% from the previous year [17]. - Target's consensus EPS estimate has been revised down by 3.1% over the last 30 days, resulting in a negative Earnings ESP of -9.91%, combined with a Zacks Rank of 4 (Sell), making it challenging to predict an earnings beat [18].