Discount retail company Ollie’s Bargain Outlet (NASDAQ:OLLI) will be announcing earnings results tomorrow before market hours. Here’s what to expect.

Ollie's beat analysts’ revenue expectations by 3% last quarter, reporting revenues of $578.4 million, up 12.4% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and full-year revenue guidance meeting analysts’ expectations.

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

This quarter, analysts are expecting Ollie’s revenue to grow 8.2% year on year to $519.5 million, slowing from the 14.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.57 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. Ollie's has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Ollie’s peers in the discount retailer segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Five Below delivered year-on-year revenue growth of 14.6%, beating analysts’ expectations by 5.3%, and Ross Stores reported revenues up 3%, falling short of estimates by 1.5%. Five Below traded up 10.7% following the results while Ross Stores was also up 2.2%.

Read our full analysis of Five Below’s results here and Ross Stores’s results here.

There has been positive sentiment among investors in the discount retailer segment, with share prices up 5.7% on average over the last month. Ollie's is up 4.9% during the same time and is heading into earnings with an average analyst price target of $105.07 (compared to the current share price of $102.88).

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