Golf Clap for Family Dollar Stores

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Family Dollar Stores (NYSE: FDO) reported earnings on Oct. 3. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Aug. 25 (Q4), Family Dollar Stores met expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased and GAAP earnings per share expanded.

Margins dropped across the board.

Revenue details
Family Dollar Stores reported revenue of $2.36 billion. The 24 analysts polled by S&P Capital IQ foresaw sales of $2.36 billion on the same basis. GAAP reported sales were 11% higher than the prior-year quarter's $2.13 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.75. The 25 earnings estimates compiled by S&P Capital IQ forecast $0.75 per share. GAAP EPS of $0.69 for Q4 were 3.0% higher than the prior-year quarter's $0.67 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 33.8%, 20 basis points worse than the prior-year quarter. Operating margin was 6.1%, 10 basis points worse than the prior-year quarter. Net margin was 3.4%, 30 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.37 billion. On the bottom line, the average EPS estimate is $0.79.

Next year's average estimate for revenue is $10.38 billion. The average EPS estimate is $4.24.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 552 members out of 605 rating the stock outperform, and 53 members rating it underperform. Among 177 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 162 give Family Dollar Stores a green thumbs-up, and 15 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Family Dollar Stores is outperform, with an average price target of $70.45.

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