Grocery Outlet (GO) Q3 2019 Earnings Prep

in EARNINGS/INVESTING IDEAS by

Grocery Outlet Holding Corp. (NASDAQGS:GO) is scheduled to report Q3 earnings results on November 11, 2019 after close of trading. The company is expected to report earnings of $0.19/share on revenue of $652.5 million. The consensus earnings per share (EPS) of $0.19/share is based on a poll of 9 analysts and revenue forecast of $652.5 million based on a poll of 6 analysts.

Earnings Call Trends

The company beat earnings last quarter, Grocery Outlet’s first earnings call after it went public in June 2019. After the last earnings report for the period ending June 29, 2019, the stock price reacted by increasing by 5.2%.

Analyst Expected vs Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2019 $0.13 $0.16 19.8% Beat

What are your expectations from Grocery Outlet for this earnings this quarter? Let us know in the comments!

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-08-13 $37.54 $39.50 5.2% Increase

Fundamentals And Technical Analysis

Grocery Outlet is currently trading at $31.11/share, up 0.8% for the day. The company is trading at approximately 65.4% of its 52-week high of $47.58/share. The company’s stock price is down -17.1% since the last earnings report and down -3.4% over the previous week.

The company’s 14 Day Relative Price Index (RSI) of 35.13 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

Grocery Outlet Stock Price

The current share price implies a price-to-earnings (P/E) multiple of -723.2x and a forward P/E multiple of 46.6x. It will be necessary for the company to deliver strong earnings to keep it on track with full-year projections and justify the nearly 50x trading multiple.

Grocery Outlet’s current share price also implies a price-to-book (P/B) multiple of 3.8x. The following table summarizes some other key fundamental ratios:

Data as of November 10, 2019
Metric Value
Last Fiscal Period FY2019.Q2
Period End Date June 29, 2019
Stock Price (Current) $31.11
P/E Ratio -723.2x
P/E Ratio (Fwd) 46.6x
PEG Ratio 1.5
Total Debt to Capital (%) 30.6%
Levered Free Cash Flow $8.826 million
Enterprise Value / EBITDA 34.0x

Company Profile: Grocery Outlet Holding Corp.

Grocery Outlet Holding Corp. is a mid-cap stock with a market capitalization of $2.749 billion and a total enterprise value of $3.943 billion. The company operates in the Consumer Staples sector and Food & Staples Retailing industry.

Grocery Outlet Holding Corp. owns and operates a chain of grocery stores in the United States. The company offers products in various categories, such as grocery, dairy and deli, produce, refrigerated and frozen, floral, beer and wine, general merchandise, and health and beauty care, as well as fresh meat and seafood; and natural, organic, specialty, and healthy products.

As of December 29, 2018, it had 316 stores, which included 308 independent operated stores, as well as 8 company operated stores in 5 western states and in Pennsylvania. The company was founded in 1946 and is headquartered in Emeryville, California.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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