Why Five Below Stock Is Falling Today

Five Below Inc FIVE shares are trading lower Thursday after the company reported weak top-line results and issued guidance below analyst estimates.

Five Below said fiscal first-quarter revenue increased 7% year-over-year to $639.6 million, which missed the estimate of $652.74 million, according to data from Benzinga Pro. The company reported quarterly earnings of 59 cents per share, which beat the estimate of 58 cents per share.

Five Below expects fiscal second-quarter revenue to be between $675 million and $695 million versus the estimate of $729.47 million. The company expects second-quarter earnings to be between 74 cents and 86 cents per share versus the estimate of $1.20 per share.

Five below said it expects full-year revenue to be between $3.04 billion and $3.12 billion. Full-year earnings are expected to be between $4.85 and $5.24 per share.

Analyst Assessment:

• Keybanc analyst Bradley Thomas maintained Five Below with an Overweight rating and lowered the price target from $230 to $210.
• Wells Fargo maintained Five Below with an Overweight rating and lowered the price target from $240 to $160.
• Citigroup analyst Paul Lejuez maintained Five Below with a Buy rating and lowered the price target from $205 to $187.
• Guggenheim analyst John Heinbockel maintained Five Below with a Buy rating and lowered the price target from $250 to $200.
• Morgan Stanley analyst Simeon Gutman maintained Five Below with an Overweight rating and lowered the price target from $210 to $150.

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FIVE Price Action: Five Below shares have traded between $237.86 and $110.83 over a 52-week period.

THe stock was down 5.21% at $128.32 at time of publication.

Photo: courtesy of Five Below.