Five Below (FIVE) Stock Pops As Q3 Sales Jump 29%

Five Below, Inc. (NASDAQ:FIVE) just released its third-quarter financial results, posting earnings of $0.18 per share and revenues of $257.2 million. Currently, Five Below is a Zacks Rank #2 (Buy), and is up 3.56% to $63.34 per share in after-hours trading shortly after its earnings report was released.

FIVE:

Beat earnings estimates. The company posted earnings of $0.18 per share, beating our earnings estimates of $0.13 per share.

Beat revenue estimates. The company saw revenue figures of $257.2 million, topping our consensus estimate of $244.93 million.

Five Below’s third-quarter revenues jumped 28.9%, spurred by an 8.5% year-over-year climb in comparable store sales.

The discount chain’s operating income soared 71.6% to hit $14.8 million. Five Below’s net income hit $9.9 million, which marked an 81.4% gain form the year-ago period.

For the fourth-quarter, Five Below now projects revenues will be between $491 million and $503 million. On top of that, the company expects to post EPS between $1.09 and $1.16.

“We are extremely pleased with our third quarter results that exceeded the high end of our sales, comp and earnings outlook,” CEO Joel Anderson said in a statement.

“This quarterly performance reflects a strong customer response to our WOW product, incredible price points, differentiated in-store experience and increasingly targeted marketing efforts. With the strength of our year-to-date performance, as well as our quarter-to-date momentum, we are raising our guidance for the year.”

Here’s a graph that looks at Five Below’s Price, Consensus and EPS Surprise history:

Five Below, Inc. Price, Consensus and EPS Surprise

Five Below, Inc. Price, Consensus and EPS Surprise | Five Below, Inc. Quote

Five Below, Inc. is a specialty value retailer offering merchandise for teen and pre-teen customers in the United States. The Company offers products all priced at $5 and below, including select brands and licensed merchandise across a range of categories.

Check back later for our full analysis on Five Below’s earnings report!

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>