Family Dollar Stores Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Family Dollar Stores (NYSE:FDO) will unveil its latest earnings on Thursday, June 28, 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 estimate of analysts is for profit of $1.06 per share, a rise of 16.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.05. Between one and three months ago, the average estimate moved up. It has been unchanged at $1.06 during the last month. Analysts are projecting profit to rise by 17.3% compared to last year’s $3.66.

Past Earnings Performance: Last quarter, the company topped estimates by 0 cents, coming in at net income of $1.15 per share against a mean estimate of profit of $1.13. The company fell in line with estimates in the first quarter.

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Stock Price Performance: Between March 28, 2012 and June 22, 2012, the stock price rose $12.07 (20.7%), from $58.36 to $70.43. The stock price saw one of its best stretches over the last year between September 9, 2011 and September 20, 2011, when shares rose for eight straight days, increasing 6.6% (+$3.33) 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, dropping 16.9% (-$9.18) over that span.

A Look Back: In the second quarter, profit rose 10.7% to $136.4 million ($1.15 a share) from $123.2 million (98 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 8.6% to $2.46 billion from $2.26 billion.

Wall St. Revenue Expectations: Analysts predict a rise of 10.2% in revenue from the year-earlier quarter to $2.37 billion.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 8% in the fourth quarter of the last fiscal year and 8.1% in the first quarter before increasing again in the second quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 7.8% in the third quarter of the last fiscal year, 9.1% in the fourth quarter of the last fiscal year and 7.6% in the first quarter before increasing again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with 12 of 20 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.52 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.

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

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