Ross Stores (NASDAQ:ROST) dropped over 1.1 percent during trading on Thursday despite reporting a 19 percent increase in third quarter profits. The company said that more shoppers looking for bargains helped the company post the strong quarterly performance. The results topped analyst expectations but the drop in share price came following the company’s reconfirmation of its earlier earnings and revenue outlook for the fourth quarter.
For the three months which ended on October 29th the discount retailer posted a net income of $144 million, or $1.26 per share, up from last years same quarter result of $121.4 million or $1.02 per share. That result beat analyst expectations by 2 cents per share.
Revenue during the period rose by 10 percent to $2.05 billion from $1.87 billion and was slightly better than the $2.04 billion Wall Street estimated. Revenue at store open at least one year rose by 5 percent.
For the fourth quarter Ross Stores expects earning of $1.53 to $1.59 per share and that revenue at stores open at least one year will rise by 2 to 3 percent. Analysts on average have predicted earnings of $1.59 per share.
The company announced a 2-for-1 stock split that will be paid as a dividend on December 5th to shareholder on record as of November 29th.
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