Dillards Inc. Earnings Cheat Sheet: Increased Profit Helps Beat the Street

Dillards Inc. (NYSE:DDS) reported net income above Wall Street’s expectations for the third quarter. Dillard’s operates as an apparel and home furnishing retailer.

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Dillards Earnings Cheat Sheet for the Third Quarter

Results: Net income for Dillards Inc. rose to $26.6 million (50 cents per share) vs. $14.4 million (22 cents per share) in the same quarter a year earlier. This marks a rise of 85% from the year earlier quarter.

Revenue: Rose 3% to $1.38 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: DDS beat the mean analyst estimate of 38 cents per share.

Quoting Management: Dillard’s Chief Executive Officer, William T. Dillard, II, stated, “Our 5% comparable store sales performance provided strong income momentum as we maintained gross margin and leveraged our operating expenses – resulting in an 85% increase in net income for the quarter. This record-setting third quarter performance further solidifies our confidence in our strategy as we enter the holiday season.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose more than twofold and in the first quarter, the figure rose 57%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 11 cents in the second quarter, by 36 cents in the first quarter, and by 30 cents in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 3.8% to $1.48 billion in the second quarter. The figure rose 1.1% in the first quarter from the year earlier and climbed 5.4% in the fourth quarter of the last fiscal year from the year-ago quarter.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the fourth quarter has moved down from $2.08 a share to $1.99 over the last ninety days. For the fiscal year, the average estimate has moved up from $3.89 a share to $3.99 over the last sixty days.

Competitors to Watch: The Bon-Ton Stores, Inc. (NASDAQ:BONT), Saks Incorporated (NYSE:SKS), Macy’s, Inc. (NYSE:M), J.C. Penney Company, Inc. (NYSE:JCP), Kohl’s Corporation (NYSE:KSS), Sears Holdings Corporation (NASDAQ:SHLD), Nordstrom, Inc. (NYSE:JWN), Stage Stores, Inc. (NYSE:SSI), The TJX Companies, Inc. (NYSE:TJX), and Grazziotin SA (CGRA4).

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

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