Family Dollar earnings rise 23%
The discount retailer beats expectations as its stock continues to outperform.
By Andrea Tse, TheStreet
Family Dollar (FDO) predicts first-quarter earnings of between 55 and 60 cents after reporting consensus-beating fourth-quarter earnings.
In the year-earlier first quarter, Family Dollar earned 49 cents a share. Analysts expect the discount retailer to earn 57 cents a share in the first quarter. The company expects first-quarter comparable-store sales of between 5% and 7%.
Family Dollar said fourth-quarter net income rose 23% to $74 million, or 56 cents a share, from $60.1 million, or 43 cents, a year earlier.
Fourth-quarter net sales were $1.96 billion, 8% above sales of $1.81 billion the previous year. Comparable-store sales increased 6.1%. Sales in the quarter were strongest in the consumables category.
The consensus estimate for the quarter was earnings of 51 cents a share on revenue of $1.96 billion.
Colins added, "This is one I could get behind . . . with the buyback and a 1.4% dividend. However, I would be much more comfortable buying at $40 or even $42 rather than chase it over $45."
Family Dollar has been a strong performer for most of 2010, gaining 60% year to date. Shares were up 2.7% to $44.50 Wednesday afternoon.
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[BRIEFING.COM] Equity indices closed out the month of August on a modestly higher note. The Russell 2000 (+0.6%) and Nasdaq Composite (+0.5%) finished ahead of the S&P 500 (+0.3%), which extended its August gain to 3.8%. Blue chips lagged with the Dow Jones Industrial Average (+0.1%) spending the bulk of the session in the red.
The final week of August represented one of the quietest stretches for the stock market so far this year. The first four sessions of the week produced the ... More
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