Ollie's (OLLI) Q2 Earnings Report Preview: What To Look For

Discount retail company Ollie’s Bargain Outlet (NASDAQ:OLLI) will be announcing earnings results tomorrow before the bell. Here’s what to look for.

Ollie's met analysts’ revenue expectations last quarter, reporting revenues of $508.8 million, up 10.8% year on year. It was a solid quarter for the company, with a decent beat of analysts’ earnings estimates.

Is Ollie's a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Ollie’s revenue to grow 9.1% year on year to $561.3 million, slowing from the 13.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.79 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Ollie's has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Ollie’s peers in the general merchandise retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Ross Stores delivered year-on-year revenue growth of 7.1%, meeting analysts’ expectations, and TJX reported revenues up 5.6%, topping estimates by 1.1%. Ross Stores traded up 1.7% following the results while TJX was also up 5%.

Read our full analysis of Ross Stores’s results here and TJX’s results here.

Investors in the general merchandise retail segment have had steady hands going into earnings, with share prices flat over the last month. Ollie's is down 3.2% during the same time and is heading into earnings with an average analyst price target of $101.8 (compared to the current share price of $96).

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