Family Dollar Stores Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Family Dollar Stores, Inc. (NYSE:FDO) will unveil its latest earnings on Wednesday, September 28, 2011. Family Dollar Stores operates more than 6,600 retail discount stores across the U.S., offering consumables, home products, apparel accessories, seasonal and electronics.

Family Dollar Stores, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 63 cents per share, a rise of 12.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 65 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 63 cents during the last month. For the year, analysts are projecting net income of $3.09 per share, a rise of 17.9% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after being in line with forecasts the quarter prior. In the third quarter, it reported profit of 91 cents per share versus a mean estimate of 94 cents. Two quarters ago, it reported net income of 98 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $2.12 billion in revenue this quarter, a rise of 8.2% from the year ago quarter. Analysts are forecasting total revenue of $8.54 billion for the year, a rise of 8.5% from last year’s revenue of $7.87 billion.

Analyst Ratings: Analysts seem relatively indifferent about Family Dollar Stores with 13 of 20 analysts surveyed maintaining a hold rating.

Key Stats:

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 6.5% while it rose 9.8% in the second quarter and 9.9% in the first quarter.

Revenue has risen the past four quarters. Revenue increased 7.8% to $2.15 billion in third quarter. The figure rose 8.3% in the second quarter from the year earlier, climbed 9.5% in the first quarter from the year-ago quarter and 8% in the fourth quarter of the last fiscal year.

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).

Stock Price Performance: During August 24, 2011 to September 22, 2011, the stock price had risen $4.20 (8.7%) from $48.09 to $52.29. The stock price saw one of its best stretches over the last year between September 27, 2010 and October 7, 2010 when shares rose for nine-straight days, rising 7.7% (+$3.25) over that span. It saw one of its worst periods between July 26, 2011 and August 8, 2011 when shares fell for 10-straight days, falling 16.9% (-$9.15) over that span. Shares are up $3.10 (+6.3%) year to date.

(Source: Xignite Financials)

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