Ross Stores, Inc. (Nasdaq: ROST) posted market-beating fourth quarter earnings results and boosted its dividend and buyback, but its first quarter guidance came in below expectations.

Written by StockNews.com

The Dublin, CA-based discount apparel retailer reported Q4 EPS of $0.77, which was $0.02 better than the Wall Street consensus estimate of $0.75.

Revenues rose 8% from last year to $3.51 billion, also topping analysts’ view for $3.46 billion.

Looking ahead, Ross forecast Q1 EPS ranging from $0.76 to $0.79 which would miss Wall Street’s current $0.82 estimate.

For the full year 2017, however, ROST’s outlook was in-line with expectations. The company sees 2017 EPS of $3.02 to $3.15, straddling analysts’ consensus view for $3.13.

Ross also announced a new $1.75 billion share buyback program, which it expects to complete over the next two years, and a 19% raise to its quarterly dividend payout. The new dividend of $0.16 per share will be paid on March 31, 2017 to shareholders of record as of March 10.

The company commented via press release:

“We are very pleased with our better-than-expected sales and earnings results for the fourth quarter and fiscal year, especially given our strong multi-year comparisons and the highly competitive and promotional holiday season. Our results continued to benefit from our ability to offer customers great values on a wide assortment of gifts and fashions for the family and the home.”

...Year-to-date, ROST has gained 4.54%, versus a 5.79% rise in the benchmark S&P 500 index during the same period.

ROST currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #2 of 67 stocks in the Fashion & Luxury category.