Sneak Peek: 99 Cents Only Stores (NDN) Reporting Earnings Aug. 4th

Earnings Estimates (High/Mean/Low): $0.21 / $0.193 / $0.17

99 Cents Only Stores (NYSE: NDN) announced last Friday that it will release financial results for its fiscal first quarter ended June 26 shortly after the market closes on Wednesday, August 4.  The conference call is scheduled to follow at about 4:30 PM EST.

NDN operates 276 “extreme value” retail stores, over 200 of which are located in California.  The company opened 9 new locations in fiscal ’10, but also closed 13.  Their report should give us a nice glimpse into the American consumer, as dollar stores have thriven during these times of high unemployment and abysmal consumer sentiment.  As such, NDN saw YoY earnings growth of 600% from ’08-’09 and 210% from ’09-’10.  However, current forecasts of 17% EPS growth from ’10-’11 may be an indication that the $1.2 billion company is hitting a ceiling in terms of expansion.

As you can see below, NDN possesses a very constructive chart.  Since hitting lows of $5.37 in July ’08, shares have put together a two year streak of higher highs and higher lows, hitting a 52-week high of $18.10 in early April. NDN has beaten estimates seven quarters in a row, and a beat on Wednesday will have investors watching to see if they can break through that mark, indicating the potential for yet another leg higher in its multi-year uptrend.

Disclosure: No holdings in NDN.