Family Dollar Stores Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Family Dollar Stores Inc. (NYSE:FDO) will unveil its latest earnings on Wednesday, June 29, 2011. 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.

Family Dollar Stores Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst is estimating net income of 95 cents per share, a rise of 23.4% from the same quarter a year ago. Estimates range from profit of 89 cents per share to net income of 97 cents per share. Over the past three months, the consensus estimate has moved up from 94 cents. The consensus estimate is unchanged from a month ago. For the year, analysts are projecting profit of $3.15 per share, a rise of 20.2% from last year.

Past Earnings Performance: The company fell in line with estimates last quarter after beating the forecasts in the prior two. In the second quarter, the company reported net income of 98 cents per share versus a mean estimate of profit of 98 cents per share. In the first quarter, the company beat estimates by 3 cents.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $2.17 billion in revenue this quarter, a rise of 8.5% from the year ago quarter. Analysts are forecasting total revenue of $8.55 billion for the year, from last year’s revenue of $7.87 billion.

Analyst Ratings: Analysts seem relatively indifferent about Family Dollar Stores with 15 of 22 analysts surveyed maintaining a hold rating.

Key Stats:

The company has now seen net income rise in three-straight quarters. In the second quarter, net income rose 9.8% while it rose 9.9% in the first quarter and 23% in the fourth quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 8.3% to $2.26 billion in second quarter. The figure rose 9.5% in the first quarter from the year earlier, climbed 8% in the fourth quarter of the last fiscal year from the year-ago quarter and 8.4% in the third 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), Walgreen (NYSE:WAG) and CVC (NYSE:CVS).

Stock Price Performance: Over the past three months, the stock price has risen $2.12 (4.1%) from $51.22 on March 28, 2011 to $53.34 on June 22, 2011. The stock price saw one of its best stretches over the last year between September 28, 2010 and October 7, 2010 when shares rose for eight-straight days, rising 6.8% (+$2.90) over that span. It saw one of its worst periods between February 17, 2011 and February 24, 2011 when shares fell for five-straight days, falling 5% (-$2.61) over that span. Shares are up $3.98 (+8.1%) year to date.

(Source: Xignite Financials)

Get Actionable Investing Insights: Check Out Wall St. Cheat Sheet’s newest Feature Trades of the Month!