Fred’s Earnings: What Investors Should Watch

Fred’s (NASDAQ:FRED) will report earnings before markets open on Thursday, May 30th. Fred’s, Inc. operates discount general merchandise stores in the southeastern United States. The Company also markets goods and services through Fred’s Super Dollar Stores and Pharmacies and Fred’s Xpress Pharmacies.

Here is your Cheat Sheet to Fred’s Earnings:

Earnings Expectations: Analysts expect earnings of $0.27 per share on revenues of $499.41 million. Currently, the company’s P/E ratio stands at 18.81.

Analyst Trends:

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 is a profit of $0.82, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Fred’s has been performing on an annual basis:

Fiscal Year 2009 2010 2011 2012 2013
Revenue ($) in millions 1,799 1,788 1,842 1,879 1,955
Diluted EPS ($) 0.42 0.60 0.75 0.87 0.81

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Apr. 30, 2012 Jul. 31, 2012 Oct. 31, 2012 Jan. 31, 2013
Revenue ($) in millions 500.51 470.82 450.57 533.38
Diluted EPS ($) 0.28 0.17 0.18 0.18

Past Performance:
Fred’s has missed analyst estimates 3 times in the past four quarters. Shareholders could expect a bust if the company misses estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]