Family Dollar Stores Inc. Earnings Cheat Sheet: Powering Ahead

S&P 500 (NYSE:SPY) component Family Dollar Stores Inc. (NYSE:FDO) reported its results for the third quarter. Family Dollar Stores Inc. 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 Third Quarter

Results: Net income for Family Dollar Stores Inc. rose to $111.1 million (91 cents/share) vs. $104.4 million (77 cents/share) in the same quarter a year earlier. A rise of 6.5% from the year earlier quarter.

Revenue: Rose 7.8% to $2.15 billion YoY.

Actual vs. Wall St. Expectations: FDO fell short of the mean analyst estimate of 95 cents/share. Estimates ranged from 89 cents per share to 98 cents per share. Analysts were expecting revenue of $2.17 billion.

Quoting Management: “We accomplished much this quarter to position us to capture greater market share and execute our longer-term vision for Family Dollar,” said Howard Levine, Chairman and CEO. “I remain confident that our strategy of providing customers with value and convenience, combined with the impactful investments we are making to improve the shopping experience in our stores and our profitability, will continue to deliver strong shareholder returns.”

Key Stats:

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

Gross margin shrunk 0.4 percentage point to 36.2%. The contraction appeared to be driven by rising costs as the figure rose 8.4% from the year earlier quarter while revenue rose 7.8%.

Revenue has risen the past four quarters. Revenue increased 8.3% to $2.26 billion in the second quarter. The figure rose 9.5% in the first quarter from the year earlier and climbed 8% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company fell short of estimates last quarter after meeting expecations the quarter before with net income of 98 cents.

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), Walgreen (NYSE:WAG) and CVC (NYSE:CVS).

Stock Performance: Shares of FDO are down over 2% pre-market…

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(Source: Xignite Financials)