Ollie's Bargain Outlet Holdings, Inc. (NASDAQ:OLLI) shares rose more than 6% Thursday afternoon following the company’s reported Q4 results, with EPS coming in at $0.69, beating the consensus estimate of $0.66. However, the company’s revenue of $501.1 million missed the consensus estimate of $513.13. Furthermore, margins declined due to supply chain costs, and it is expected that these costs will remain elevated in 2022, especially in the first half of the year.

The company revised its initial full 2022-year guidance lower, now expecting EPS to range from $2.15 to $2.22, compared to the consensus estimate of $2.36.

Analysts at RBC Capital said they are encouraged by the fact that management expects fiscal 2023 to be back on algorithm, but anticipate investors will tread with caution near-term.