What Happened?

Shares of discount retail company Ollie’s Bargain Outlet (NASDAQ:OLLI) jumped 13.1% in the morning session after the company delivered impressive third-quarter results, surpassing analysts' expectations for operating profit and exceeding Wall Street's gross margin estimates. Revenue was in line, and the company reconfirmed its full-year revenue guidance. These results highlight Ollie's progress as it continued to grow its market share by opening new stores. Overall, this was a strong quarter for the company.

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What The Market Is Telling Us

Ollie’s shares are somewhat volatile and have had 10 moves greater than 5% over the last year. But moves this big are rare even for Ollie's and indicate this news significantly impacted the market’s perception of the business. 

The biggest move we wrote about over the last year was 3 months ago when the stock dropped 10.8% on the news that the company reported weak second-quarter earnings. Its full-year earnings guidance missed Wall Street's estimates, sending shares lower. Similarly, EPS missed during the quarter, suggesting that profitability might be pressured. On the other hand, revenue came in ahead of expectations. Regardless, this was a weaker quarter.

Ollie's is up 48% since the beginning of the year, and at $111.18 per share, has set a new 52-week high. Investors who bought $1,000 worth of Ollie’s shares 5 years ago would now be looking at an investment worth $1,844.

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