99 Cents Only Stores Earnings Cheat Sheet: Profitable Quarter Accelerates Growth

99 Cents Only Stores (NYSE:NDN) reported its results for the first quarter. The Company’s main business is the sale of various consumer products through its retail stores at price points of mainly 99 cents or less.

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99 Cents Only Stores Earnings Cheat Sheet for the First Quarter

Results: Net income for 99 Cents Only Stores rose to $17.7 million (25 cents per share) vs. $16.8 million (24 cents per share) in the same quarter a year earlier. This marks a rise of 5.2% from the year earlier quarter.

Revenue: Rose 6.3% to $368.3 million from the year earlier quarter.

Actual vs. Wall St. Expectations: NDN fell short of the mean analyst estimate of 27 cents per share. Analysts were expecting revenue of $364.4 million.

Quoting Management: Eric Schiffer, CEO of 99 Cents Only Stores, stated, “We are pleased with our financial results for the first quarter of fiscal 2012. Our long-term operational improvement initiatives have continued to meet our expectations, resulting in earnings per share of $0.25 for the first quarter of fiscal 2012.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 6.3% and in the third quarter of the last fiscal year, the figure rose 8.8%.

Revenue has risen the past four quarters. Revenue increased 11.6% to $378.5 million in the fourth quarter of the last fiscal year. The figure rose 1.7% in the third quarter of the last fiscal year from the year earlier and climbed 2.7% in the second quarter of the last fiscal year from the year-ago quarter.

The company has now fallen short of estimates in the last two quarters. In the fourth quarter of the last fiscal year, it missed expectations by 2 cents with net income of 25 cents versus a mean estimate of net income of 27 cents per share.

The company’s cost of sales rose 6.5% from a year earlier. Last quarter, cost of sales was 59.6% of revenue, similar to a year earlier.

Competitors to Watch: Dollar General Corp. (NYSE:DG), Family Dollar Stores, Inc. (NYSE:FDO), Dollar Tree, Inc. (NASDAQ:DLTR), Big Lots, Inc. (NYSE:BIG), Target Corporation (NYSE:TGT), Fred’s, Inc. (NASDAQ:FRED), Costco Wholesale Corp. (NASDAQ:COST), Wal-Mart Stores, Inc. (NYSE:WMT), Gordmans Stores, Inc. (NASDAQ:GMAN).

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(Source: Xignite Financials)