12:15 PM EDT, 03/13/2024 (MT Newswires) -- Ollie's Bargain Outlet (OLLI) is likely to post better-than-expected fiscal Q4 results and benefit from lower freight transportation costs in the near term, RBC Capital Markets said in a note.

The discount retail chain is scheduled to report fiscal Q4 results March 20. RBC projects adjusted EPS of $1.17 and comparable sales growth at 5%. The market is looking for $1.15 and 3.3% growth, respectively, according to the brokerage.

"We're comfortable being ahead of consensus/implied guidance on top-line given our low-income read-thru work points to a demand environment fairly consistent with 3Q," RBC analyst Steven Shemesh said.

Ollie's Bargain is expected to continue to take advantage of lower freight transportation costs in the near term, though there's potential for costs to rise in the second half of the year, according to the note. "All in all, we don't see this as much of a catalyst quarter," Shemesh said.

RBC has an outperform rating on the company's stock, with an $86 price target.

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