Grocery Outlet (NASDAQ:GO) Issues Earnings Results, Meets Estimates

Grocery Outlet (NASDAQ:GO) announced its quarterly earnings data on Tuesday. The company reported $0.16 EPS for the quarter, hitting analysts’ consensus estimates of $0.16, FiscalAI reports. The firm had revenue of $1.18 billion for the quarter, compared to the consensus estimate of $1.17 billion. Grocery Outlet had a positive return on equity of 5.49% and a negative net margin of 7.99%. The firm’s revenue was up .9% compared to the same quarter last year. During the same quarter last year, the business posted $0.21 earnings per share.

Here are the key takeaways from Grocery Outlet’s conference call:

• Grocery Outlet returned to positive comparable sales in Q3, up 0.5%, with traffic rising 2.4%; comps exceeded guidance despite an estimated 60-basis-point drag from the Cyclospora outbreak. Management expects Q4 comps to increase 1.5%–2.5% and full-year comps to be positive 0.2%–0.4%.
• Management said a stronger opportunistic assortment is attracting new and repeat customers, lifting traffic and opportunistic units per transaction. October comps accelerated after synthetic promotions ended, and the company says opportunistic products are margin-accretive.
• Profitability remained under pressure: adjusted EBITDA fell to $59.4 million from $66.7 million a year earlier, adjusted EPS declined to $0.16 from $0.21, and gross margin contracted 40 basis points to 30.0%. Higher supply-chain costs, promotions and produce shrink contributed to the pressure.
• The company plans a measured pace of roughly 20 store openings in 2027, all in infill markets, and expects capital expenditures to decline. Management cited more consistent returns from infill stores, while noting variability in newer markets and ongoing pressure from occupancy costs.

Grocery Outlet Stock Down 6.4%

GO stock opened at $13.12 on Thursday. The firm has a market cap of $1.30 billion, a PE ratio of -3.40, a PEG ratio of 9.75 and a beta of 0.64. The company has a debt-to-equity ratio of 0.60, a quick ratio of 0.30 and a current ratio of 1.29. The firm’s 50 day moving average price is $12.23 and its 200-day moving average price is $9.72. Grocery Outlet has a one year low of $5.66 and a one year high of $14.32.

Wall Street Analyst Weigh In

A number of analysts have issued reports on GO shares. Guggenheim reaffirmed a “neutral” rating on shares of Grocery Outlet in a research note on Wednesday. Deutsche Bank reissued a “hold” rating and set a $9.00 price target on shares of Grocery Outlet in a research report on Thursday, August 13th. Telsey Advisory Group boosted their price target on shares of Grocery Outlet from $12.00 to $14.00 and gave the company a “market perform” rating in a research report on Wednesday. UBS Group upped their price objective on shares of Grocery Outlet from $10.00 to $11.50 and gave the company a “neutral” rating in a report on Monday, August 17th. Finally, DA Davidson raised their price objective on shares of Grocery Outlet from $9.00 to $12.00 and gave the stock a “neutral” rating in a research report on Thursday, August 13th. One analyst has rated the stock with a Buy rating, twelve have assigned a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Reduce” and a consensus price target of $11.41.

Insider Activity at Grocery Outlet

In other news, Director Carey F. Jaros bought 15,000 shares of the business’s stock in a transaction on Thursday, August 27th. The shares were bought at an average price of $11.70 per share, with a total value of $175,500.00. Following the completion of the transaction, the director directly owned 60,000 shares in the company, valued at $702,000. This trade represents a 33.33% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Paul Miller bought 8,000 shares of the business’s stock in a transaction on Thursday, August 20th. The stock was purchased at an average cost of $10.90 per share, for a total transaction of $87,200.00. Following the transaction, the insider owned 72,171 shares of the company’s stock, valued at $786,663.90. This trade represents a 12.47% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Corporate insiders own 5.60% of the company’s stock.

About Grocery Outlet

Grocery Outlet Holding Corp. operates Grocery Outlet Bargain Market, a discount grocery chain offering brand-name products and private-label items at value-oriented prices. Its stores carry a range of goods, including groceries, fresh produce, meat, dairy, frozen foods and household products. The company uses opportunistic buying to source products, which can result in changing assortments and limited-time deals. Founded in 1946 by Jim Read, Grocery Outlet has grown from a California-based business into a retailer serving communities across the western United States and parts of the East Coast.