Earnings Cheat Sheet: Family Dollar Tests New Highs After 23% Earnings Increase

Family Dollar Stores (FDO) offers the street what it wants: top line growth. Here’s your Cheat Sheet to today’s earnings:

Earnings: Q4 profits of $0.56 vs $0.51 estimates and $0.43 in Q4 last year. Profits rose 23% Year-over-Year. FDO has delivered double digit earnings growth for 10 straight quarters.

Revenue: Q4 revenue rose 8% from $1.81B to $1.96B.

Notable Stats: FDO authorized a new $750 million share repurchase plan. FDO also plans to open 300 new stores during fiscal 2011, up 50% from fiscal 2010. They will also renovate 600 to 800 stores.

Gross margin is also up 20 basis points to 34.7% on higher prices and improved loss prevention. FDO forecasts Q1 2001 earnings to be between $0.55 and $0.60 vs $0.49 Q1 2010 and fiscal 2011 earnings to be between $2.95 to $3.15 a share on a same-store sales increase of 5% to 7% — in line with analyst estimates of $2.96 a share.

Technicals: Shares of Family Dollar Stores gapped-up and tested all time highs. The stocks is comfortably resting above it’s 50-day and 200-day simple moving averages:

Disclosure: No positions in FDO.