Can Family Dollar Stores Meet These Numbers?

Updated

Family Dollar Stores (NYS: FDO) is expected to report Q3 earnings around June 28. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Family Dollar Stores' revenues will grow 10.2% and EPS will grow 17.6%.

The average estimate for revenue is $2.37 billion. On the bottom line, the average EPS estimate is $1.07.


Revenue details
Last quarter, Family Dollar Stores reported revenue of $2.46 billion. GAAP reported sales were 8.6% higher than the prior-year quarter's $2.26 billion.

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

EPS details
Last quarter, EPS came in at $1.15. GAAP EPS of $1.15 for Q2 were 17% higher than the prior-year quarter's $0.98 per share.

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

Recent performance
For the preceding quarter, gross margin was 34.9%, 80 basis points worse than the prior-year quarter. Operating margin was 9.0%, 10 basis points better than the prior-year quarter. Net margin was 5.5%, 10 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $9.34 billion. The average EPS estimate is $3.67.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 555 members out of 602 rating the stock outperform, and 47 members rating it underperform. Among 177 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 167 give Family Dollar Stores a green thumbs-up, and 10 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 $58.52.

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The article Can Family Dollar Stores Meet These Numbers? originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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