Shares of Grocery Outlet Holding Corp. (NASDAQ: GO) surged nearly 6% in after-hours trading on November 5th, following the release of the company's third-quarter earnings results. The discount grocery chain reported better-than-expected earnings and raised its full-year revenue guidance, fueling investor optimism about its growth prospects.

For the third quarter, Grocery Outlet posted adjusted earnings per share of $0.28, surpassing analysts' consensus estimates of $0.27. Revenue climbed 10.4% year-over-year to $1.11 billion, in line with expectations. While same-store sales growth moderated to 1.2%, the company's rapid expansion of new stores contributed significantly to its top-line growth.

Looking ahead, Grocery Outlet slightly raised its full-year revenue guidance to $4.35 billion, reflecting continued momentum in its business model. However, the company lowered its adjusted EPS forecast for the year, citing inflationary pressures and higher operating costs. Despite this revision, investors seemed encouraged by Grocery Outlet's ability to drive revenue growth and expand its footprint in a challenging economic environment.