Family Dollar Stores First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Family Dollar Stores (NYSE:FDO) will unveil its latest earnings on Thursday, January 3, 2013. Family Dollar Stores operates more than 6,600 retail discount stores across the United States, offering consumables, home products, apparel accessories, seasonal and electronics.

Family Dollar Stores Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 74 cents per share, a rise of 8.8% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 78 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 74 cents during the last month. For the year, analysts are projecting net income of $4.25 per share, a rise of 16.8% from last year.

Past Earnings Performance: Last quarter, the company saw profit of 75 cents per share versus a mean estimate of net income of 75 cents per share. This comes after two consecutive quarters of exceeding expectations.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 10.7% in revenue from the year-earlier quarter to $2.38 billion.

Stock Price Performance: Between November 28, 2012 and December 27, 2012, the stock price dropped $6.52 (-9.4%), from $69.01 to $62.49. The stock price saw one of its best stretches over the last year between April 13, 2012 and April 20, 2012, when shares rose for six straight days, increasing 6.3% (+$4.08) over that span. It saw one of its worst periods between December 17, 2012 and December 27, 2012 when shares fell for eight straight days, dropping 5.5% (-$3.61) over that span.

Analyst Ratings: There are mostly holds on the stock with 10 of 19 analysts surveyed giving that rating.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 10.7% in the second quarter of the last fiscal year and 12.1% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 7.6% in the first quarter of the last fiscal year, 8.6% in the second quarter of the last fiscal year and 9.6% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 1.4% to $80.9 million (69 cents a share) from $79.8 million (67 cents a share) the year earlier, meeting analyst expectations. Revenue rose 10.8% to $2.36 billion from $2.13 billion.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.66 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.65 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 3.5% to $1.77 billion while liabilities rose by 2.8% to $1.07 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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