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] The headlines generally favored Tuesday being another good day for the stock market. Instead, it was just a mixed day with modest point changes on either side of the unchanged mark for the major indices.
For the most part, the stock market was a sideshow. The main trading events were seen in the commodity and Treasury markets, both of which saw some decent-sized losses within their respective complex.
Dollar strength was at the heart of the weakness in ... More
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