Discount grocery store chain Grocery Outlet (NASDAQ:GO) will be reporting results tomorrow afternoon. Here’s what to expect.

Grocery Outlet beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $1.10 billion, up 10.9% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates.

Is Grocery Outlet a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Grocery Outlet’s revenue to grow 8.3% year on year to $1.12 billion, in line with the 7.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Grocery Outlet has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Grocery Outlet’s peers in the non-discretionary retail segment, only Sprouts has reported results so far. It beat analysts’ revenue estimates by 1.4%, delivering year-on-year sales growth of 18.7%. The stock price was unchanged following the results.

Read our full analysis of Sprouts’s earnings results here.

There has been positive sentiment among investors in the non-discretionary retail segment, with share prices up 8.5% on average over the last month. Grocery Outlet is up 18.1% during the same time and is heading into earnings with an average analyst price target of $14.43 (compared to the current share price of $16.35).

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