99 Cents Only Stores Third Quarter Earnings Sneak Peek

99 Cents Only Stores (NYSE:NDN) will unveil its latest earnings on Wednesday, January 11, 2012. Ninety-nine Cents Only Stores’ main business is the sale of various consumer products through its retail stores at price points of mainly 99 cents or less.

99 Cents Only Stores Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 41 cents per share, a rise of 7.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 40 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 41 cents during the last month. For the year, analysts are projecting net income of $1.15 per share, a rise of 11.7% from last year.

Past Earnings Performance: The company showed profit of 21 cents per share versus a mean estimate of net income of last quarter. This marks the fourth month of falling short of estimates.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 7.6% in revenue from the year-earlier quarter to $393.1 million.

Analyst Ratings: Analysts seem relatively indifferent about 99 Cents Only Stores with seven of eight analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit rose 16.8% to $15.1 million (21 cents a share) from $12.9 million (18 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 8.8% to $363 million from $333.6 million.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 5.2% in the first quarter and 6.3% in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue rose 6.3% in the first quarter from the year earlier, climbed 11.6% in the fourth quarter of the last fiscal year from the year-ago quarter and 1.7% in the third quarter of the last fiscal year.

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).

Stock Price Performance: During October 10, 2011 to January 5, 2012, the stock price had risen $1.47 (7.2%) from $20.49 to $21.96. The stock price saw one of its best stretches over the last year between March 2, 2011 and March 9, 2011 when shares rose for six-straight days, rising 4% (+65 cents) over that span. It saw one of its worst periods between July 21, 2011 and July 28, 2011 when shares fell for six-straight days, falling 4.4% (-90 cents) over that span.

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

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

 

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com