Grocery Outlet Holding Corp. (GO) saw its stock price surge 11.21% in after-hours trading on Tuesday, following the release of its second-quarter financial results that significantly exceeded analyst expectations.

The extreme-value retailer reported adjusted earnings per share of $0.23, handily beating the IBES estimate of $0.17. This impressive performance was underpinned by adjusted net income of $22.8 million, which surpassed the expected $18.2 million. Additionally, the company's adjusted EBITDA reached $67.7 million, outperforming the projected $64.4 million.

While Grocery Outlet's Q2 sales of $1.18 billion slightly missed the analyst estimate of $1.196 billion, the company still demonstrated growth with a 4.5% increase in net sales compared to the same period last year. Comparable store sales also showed a positive trend, rising by 1.1%. CEO Jason Potter expressed optimism about the company's performance, stating, "Our focus on execution is beginning to deliver results, enabling us to outperform our outlook for the second quarter." He also highlighted sustainable gains in profitability and progress on key strategic objectives.