Family Dollar Stores Earnings: Here’s Why Investors are Selling Shares Now

Family Dollar Stores Inc. (NYSE:FDO) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3.93%.

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Family Dollar Stores Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 5.22% to $1.21 in the quarter versus EPS of $1.15 in the year-earlier quarter.

Revenue: Rose 17.71% to $2.89 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Family Dollar Stores Inc. reported adjusted EPS income of $1.21 per share. By that measure, the company missed the mean analyst estimate of $1.23. It beat the average revenue estimate of $2.89 billion.

Quoting Management: “Our continued market share gains reflect the successful execution of our strategy to become more relevant to customers,” said Howard R. Levine, Chairman and CEO. “This quarter we delivered positive results despite financial pressures that continue to challenge our customers. Following a difficult December, we were pleased with our sales results in early January. Unfortunately, the unanticipated delay of the 2012 tax refunds impacted our results at the end of January and the beginning of February. We were happy to see sales trends improve towards the end of the quarter as our customers began to receive their tax refunds.”

Key Stats (on next page)…

Revenue increased 19.5% from $2.42 billion in the previous quarter. EPS increased 75.36% from $0.69 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $1.18 and has not changed. For the current year, the average estimate is a profit of $3.98, which is the same with that ninety days ago.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]