Grocery Outlet Holding Corp. (NASDAQ:GO) shares jumped 16.41% to $9.01 in after-hours trading on Wednesday after the California-based discount grocer reported first-quarter results where earnings per share beat analyst estimates by 150%.

Results In Line With Guidance

Grocery Outlet’s net sales for the first quarter ended Apr. 4 rose 3.6% to $1.17 billion, topping analyst estimates by 1.36%, driven by new store openings, though comparable-store sales fell 1.0%. Gross margin contracted 80 basis points to 29.6%, including a 50-bps hit from inventory markdowns tied to store closures.

Adjusted net income came in at $4.6 million, or $0.05 per diluted share, beating the analyst estimate of $0.02 by 150%.

The GAAP net loss widened to $180.3 million, or $1.83 loss per diluted share, inflated primarily by a $158 million non-cash goodwill impairment charge that does not impact future operations. Adjusted net income came in at $4.6 million, or $0.05 per diluted share, beating the analyst estimate of $0.02 by 150%

Jason Potter, president and CEO of Grocery Outlet, said, “We delivered first quarter results consistent with our guidance, as our work to strengthen the business drove sequential improvements in comp-store sales throughout the quarter.”

Trading Metrics, Technical Analysis

Grocery Outlet has a market capitalization of $765.66 million, a 52-week high of $19.41 and a 52-week low of $5.66.

The Relative Strength Index (RSI) of GO stands at 49.93.

The small-cap stock has dropped 42.58% over the past 12 months.

The stock is currently positioned at about 15% of its 52-week range, indicating it is trading closer to its annual low.

Price Action: GO closed the regular session down 2.76% at $7.74, according to Benzinga Pro.

Benzinga’s Edge Stock Rankings indicate that GO is experiencing long-term upward movement along with medium and long-term consolidation.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.