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Grocery Outlet Holding Corp. (NASDAQ: GO) is on the verge of releasing its first-quarter financial results following the market close on Wednesday, May 13. Industry analysts are largely forecasting a significant dip in earnings per share for the discount retailer. The consensus estimate pegs Q1 earnings at a mere 2 cents per share, a stark contrast to the 13 cents reported in the same period last year. Despite the projected earnings decline, revenue expectations hover around $1.15 billion, marginally up from the $1.13 billion recorded in the previous year, according to data compiled by Benzinga Pro.

This anticipation of reduced profitability follows a challenging fourth quarter for Grocery Outlet, which saw the company report financial figures below analyst expectations. Additionally, the company provided sales guidance for fiscal year 2026 that fell short of market projections. In the wake of these developments, the company's stock experienced a modest uptick, closing at $7.96 on Tuesday, a 1.4% increase.

The current outlook has prompted several prominent financial analysts to re-evaluate their positions and price targets for Grocery Outlet. On March 5, 2026, DA Davidson analyst Michael Baker maintained a Neutral rating but lowered the price target from $11 to $7. Wells Fargo analyst Edward Kelly echoed a similar sentiment, upholding an Equal-Weight rating while slashing the price target from $10.5 to $7. Telsey Advisory Group's Joseph Feldman downgraded the stock from Outperform to Market Perform, reducing the price target from $15 to $9. Morgan Stanley's Simeon Gutman maintained an Equal-Weight rating and revised the price target from $11 to $7. Lastly, Jefferies analyst Corey Tarlowe downgraded the stock from Buy to Hold and significantly cut the price target from $18 to $7.

The collective revisions from these analysts, who boast impressive accuracy rates ranging from 63% to 74%, underscore the concerns surrounding Grocery Outlet's near-term performance. Investors will be keenly watching the upcoming earnings call for further insights into the company's strategies to navigate the current economic landscape and restore investor confidence.

In summary, Grocery Outlet is facing a period of scrutiny as it prepares to announce potentially lower first-quarter earnings. The downward adjustments in analyst ratings and price targets reflect a cautious sentiment across the market following recent financial performance and future guidance. The upcoming earnings report will be crucial in shaping the market's perception of the company's trajectory.