Family Dollar Stores Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Family Dollar Stores (NYSE:FDO) will unveil its latest earnings on Wednesday, October 3, 2012. Family Dollar Stores operates more than 6,600 retail discount stores across the United States, offering consumables, home products, apparel accessories, seasonal and electronics.

Family Dollar Stores Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 75 cents per share, a rise of 13.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 76 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 75 cents during the last month. Analysts are projecting profit to rise by 16.7% compared to last year’s $3.64.

Past Earnings Performance: Last quarter, the company met expectations by reporting net income of $1.06 per share last quarter. In the previous second quarter, the company beat estimates by 2 cents.

Investing Insights: Will New Apple Products Continue to PUMP UP Shares?

A Look Back: In the third quarter, profit rose 12.1% to $124.5 million ($1.06 a share) from $111.1 million (91 cents a share) the year earlier, meeting analyst expectations. Revenue rose 9.6% to $2.36 billion from $2.15 billion.

Wall St. Revenue Expectations: Analysts are projecting a rise of 10.8% in revenue from the year-earlier quarter to $2.36 billion.

Stock Price Performance: From August 29, 2012 to September 27, 2012, the stock price rose $1.99 (3.1%), from $63.50 to $65.49. The stock price saw one of its best stretches over the last year between October 13, 2011 and October 21, 2011, when shares rose for seven straight days, increasing 9.5% (+$5.13) over that span. It saw one of its worst periods between February 9, 2012 and February 21, 2012 when shares fell for eight straight days, dropping 6% (-$3.48) over that span.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 8.1% in the first quarter and 10.7% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 9.1% in the fourth quarter of the last fiscal year, 7.6% in the first quarter and 8.6% in the second quarter before increasing again in the third quarter.

Analyst Ratings: With eight analysts rating the stock as a buy, two rating it as a sell and 10 rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.65 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.52 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 12.1% to $1.71 billion while liabilities rose by 3.1% to $1.04 billion.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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

Don’t Miss These Additional Hot Stories:

What Do Top Executives Think About the U.S. Economy?

Are Kraft’s Stocks a Buy Amidst the Spin-Off?

Here’s What the Experts Say About Facebook’s Stock