Why Ollie's Bargain Outlet Shares Are Getting Cheaper Today

Ollie's Bargain Outlet Holdings Inc OLLI is trading lower Friday after the company reported worse-than-expected second-quarter financial results.

Ollie's Bargain Outlet reported quarterly earnings of 52 cents, which came in below the estimate of 55 cents. The company reported quarterly revenue of $415.9 million, which came in below the estimate of $435.75 million. 

Ollie's Bargain Outlet cited supply chain challenges as a headwind in the quarter. 

“Our performance reflects the strength of our business model as well as outstanding execution by our team, particularly with the headwinds of heightened supply chain challenges," said John Swygert, president and CEO of Ollie's Bargain Outlet.

Analyst Assessment: Multiple analyst firms weighed in on the stock following its financial results:

• Keybanc analyst Bradley Thomas maintained Ollie's Bargain Outlet with an Overweight rating and lowered the price target from $105 to $95.
• Stephens & Co. analyst Daniel Imbro maintained Ollie's Bargain Outlet with an Overweight rating and lowered the price target from $120 to $107.
• Wells Fargo analyst Edward Kelly upgraded Ollie's Bargain Outlet from Underweight to Equal-Weight and announced a $70 price target.
• RBC Capital maintained Ollie's Bargain Outlet with an Outperform rating and lowered the price target from $102 to $85.
• JP Morgan analyst Matthew Boss downgraded Ollie's Bargain Outlet from Overweight to Neutral and announced a $77 price target.

OLLI Price Action: Ollie's Bargain Outlet has traded as high as $123.52 over a 52-week period. It's making a new 52-week low in trading today.

At last check Friday, the stock was down 6.43% at $72.77.

Photo by Isaac Wedin from Flickr.