Fred’s Inc. (NASDAQ:FRED) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.
Fred’s Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 10.71% to $0.31 in the quarter versus EPS of $0.28 in the year-earlier quarter.
Revenue: Rose 0.2% to $501.5 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Fred’s Inc. reported adjusted EPS income of $0.31 per share. By that measure, the company beat the mean analyst estimate of $0.27. It beat the average revenue estimate of $499.41 million.
Quoting Management: Commenting on the results, Bruce A. Efird, Chief Executive Officer, said, “We are very pleased with our first quarter results, which topped the high end of our earnings guidance for the period. These improvements reflected the immediate impact of our recently launched reconfiguration plan, as we outperformed in gross margin results and expense management. Given the unusual weather conditions that affected top-line growth during the quarter, our team’s ability to control expenses was one of the primary reasons we were at the high end of expectations.
Key Stats (on next page)…
Revenue decreased 0% from $0 in the previous quarter. EPS increased 72.22% from $0.18 in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.14 to a profit $0.1. For the current year, the average estimate has moved down from a profit of $1.01 to a profit of $0.82 over the last ninety days.
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 provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)