Five Below Analysts Boost Their Forecasts After Upbeat Earnings

Five Below, Inc. FIVE reported better-than-expected results for its third quarter and issued strong guidance for fiscal 2024 on Wednesday.

Five Below reported quarterly earnings of 42 cents per share, which beat the analyst consensus estimate of 17 cents. Quarterly revenue clocked in at $843.71 million, which beat the analyst consensus estimate of $798.58 million and is an increase over sales of $736.4 million from the same period last year.

"We are pleased to report third-quarter results that exceeded our outlook. We delivered stronger performance across a broader group of our merchandise worlds compared to the second quarter and improved our operational execution. We were encouraged to see the positive results from the initiatives we undertook to add newness and deliver value in key categories," said Ken Bull, Interim CEO and COO of Five Below.

The company also announced the appointment of Winnie Park as CEO and a member of its board of directors, effective Dec. 16, 2024.

Five Below sees fourth-quarter earnings of between $3.23 and $3.41 per share, versus the $3.33 estimate, and revenue between $1.35 billion and $1.38 billion, versus the $1.36 billion estimate. The company sees fiscal 2024 earnings between $4.78 and $4.96 per share, versus the $4.61 estimate, and revenue between $3.84 billion and $3.87 billion, versus the $3.8 billion estimate.

Five Below shares climbed 13.5% to trade at $119.10 on Thursday.

These analysts made changes to their price targets on Five Below following earnings announcement.

Telsey Advisory Group analyst Joseph Feldman maintained Five Below with a Market Perform and raised the price target from $95 to $115.
Morgan Stanley analyst Simeon Gutman maintained Five Below with an Equal-Weight and raised the price target from $100 to $120.
Guggenheim analyst John Heinbockel maintained Five Below with a Buy and raised the price target from $125 to $140.
Wells Fargo analyst Edward Kelly maintained Five Below with an Overweight and raised the price target from $115 to $135.
Barclays analyst Karen Short maintained the stock with an Equal-Weight and raised the price target from $90 to $100.

Considering buying FIVE stock? Here’s what analysts think: