Five Below, Inc. (NASDAQ:FIVE) late Wednesday posted market-beating fourth quarter earnings results an offered a solid outlook for 2017, sending its shares higher in aftermarket trading.

Written by StockNews.com

The Philadelphia-based kids merchandise retailer reported Q4 earnings per share (EPS) of $0.90, which was $0.01 better than the Wall Street consensus estimate of $0.89.

Revenues jumped 18.9% from last year to $388.1 million, also topping analysts’ view for $387.63 million.

The company also noted that comparable sales (“comps”) rose 1% from the year-ago period. Comps are considered a key indicator of a retailer’s health, since they only measure the performance of stores open at least 12 months.

Looking ahead, FIVE forecast Q1 EPS to range from $0.12 to $0.14, which could miss Wall Street’s $0.14 estimate. Q1 revenues are seen between $228 and $232 million, in-line with analysts’ view of $230.43 million.

For the full year 2017, Five Below expects EPS of $1.55 to $1.61, on revenues of $1.21 to $1.23 billion. Both of those estimates are in-line with Wall Street’s view.

The company commented on its results and future plans via press release:

“We achieved another strong year of 20% sales growth, reaching the $1 billion milestone in sales as we opened 85 net new stores and delivered our 11th consecutive year of positive comparable sales growth. This top line performance was accompanied by operating leverage, while we continued to invest in the business, resulting in a 24% increase in EPS for 2016.” “We are excited to be opening approximately 100 new stores this year and to bring our unique and differentiated concept to California. The strength of our business model, commitment to delivering unbelievable value to our customers and disciplined execution continue to drive our success. We have a strong track record as a leading high growth value retailer and remain on track to achieve our 20/20 through 2020 strategy.”

Investors greeted Five Below’s results positively, sending its shares up $1.48 (+3.88%) to $39.61 in after-hours trading. Year-to-date, FIVE had declined -4.18% prior to today’s report, versus a +4.87% rise in the benchmark S&P 500 index during the same period.

FIVE currently has a StockNews.com POWR Rating of C (Neutral), and is ranked #13 of 35 stocks in the Specialty Retailers category.