Fred’s: Here’s What Investors Need to Know Before Earnings

Fred’s (NASDAQ:FRED) will report earnings before markets open on Thursday, March 28th. 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 $0.20 per share on revenues of $533.94 million. Currently, the company’s P/E ratio stands at 15.95.

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 $0.31 to a profit $0.3. For the current year, the average estimate is a profit of $0.84, 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 2008 2009 2010 2011 2012
Revenue ($) in millions 1,781 1,799 1,788 1,842 1,879
Diluted EPS ($) 0.27 0.42 0.59 0.75 0.87

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

Quarter Oct. 31, 2011 Jan. 31, 2012 Apr. 30, 2012 Jul. 31, 2012 Oct. 31, 2012
Revenue ($) in millions 444.38 497.59 500.50 470.82 450.57
Diluted EPS ($) 0.24 0.26 0.28 0.17 0.18

Past Performance:
Fred’s has beat analyst estimates 1 times in the past four quarters. This is not consistent enough to get bullish yet.

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