Family Dollar Stores Earnings Cheat Sheet: Third Straight Quarter of Rising Profit

S&P 500 (NYSE:SPY) component Family Dollar Stores Inc. (NYSE:FDO) reported its results for the fourth quarter. Family Dollar Stores operates more than 6,600 retail discount stores across the U.S., offering consumables, home products, apparel accessories, seasonal and electronics.

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Family Dollar Stores Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the discount store rose to $79.8 million (66 cents per share) vs. $74 million (56 cents per share) in the same quarter a year earlier. This marks a rise of 8% from the year earlier quarter.

Revenue: Rose 9.1% to $2.13 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: FDO beat the mean analyst estimate of 63 cents per share. Analysts were expecting revenue of $2.12 billion.

Quoting Management: “A year ago we launched an ambitious, multi-year plan to accelerate revenue growth, expand operating margins and optimize our capital structure, and I am pleased to announce that we have executed well against our plans in a very difficult operating environment,” said Howard Levine, Chairman and CEO.

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 6.5% and in the second quarter, the figure rose 9.8%.

Gross margin shrank 0.7 percentage point to 34%. The contraction appeared to be driven by increased costs, which rose 10.2% from the year earlier quarter while revenue rose 9.1%.

Revenue has risen the past four quarters. Revenue increased 7.8% to $2.15 billion in the third quarter. The figure rose 8.3% in the second quarter from the year earlier and climbed 9.5% in the first quarter from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 91 cents versus a mean estimate of net income of 94 cents per share.

Competitors to Watch: Dollar General Corp. (NYSE:DG), 99 Cents Only Stores (NYSE:NDN), Dollar Tree, Inc. (NASDAQ:DLTR), Big Lots, Inc. (NYSE:BIG), Wal-Mart Stores, Inc. (NYSE:WMT), Target Corporation (NYSE:TGT), Fred’s, Inc. (NASDAQ:FRED), Costco Wholesale Corp. (NASDAQ:COST), Gordmans Stores, Inc. (NASDAQ:GMAN), and Amazing Savings, Inc (ODDJ).

Investing Insights: Steve Jobs Prepares to Deliver a New Catalyst for Apple’s Stock.

(Source: Xignite Financials)