Ross Stores, Inc. (NASDAQ:ROST) shares are trading higher Friday after the company reported better-than-expected third quarter financial results on Thursday and raised its outlook.

ROST is poised for potential breakout. View the charts here.

What To Know: Ross reported earnings per share of $1.58, beating the consensus estimate of $1.41. In addition, the company reported revenue of $5.60 billion, beating the consensus estimate of $5.41 billion.

Comparable store sales rose 7% and total sales increased 10% from last year. CEO Jim Conroy highlighted strong customer engagement driven by brand-name merchandise and a new marketing campaign, noting broad-based sales growth across categories and regions. Operating margin came in at 11.6%.

Q4 Outlook: The company raised its GAAP earnings per share guidance from between $1.74 and $1.81 to between $1.77 and $1.85, versus the consensus estimate of $1.79.

FY25 Outlook: Ross increased its GAAP earnings per share guidance from between $6.08 to $6.21 to between $6.38 to $6.46, versus the consensus estimate of $6.23.

Analyst Changes: Following the earnings report, multiple analysts issued price target adjustments.

• Telsey Advisory Group analyst Dana Telsey maintained a Market Perform rating on Ross and raised the price target from $160 to $175.
• B of A Securities analyst Lorraine Hutchinson maintained a Buy rating on Ross and raised the price target from $175 to $200.
• Baird analyst Mark Altschwager maintained an Outperform rating on Ross and raised the price target from $170 to $182.

See Also: Zoom Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

ROST Price Action: At the time of writing, Ross shares are trading 5.91% higher at $169.98, according to data from Benzinga Pro.

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