Family Dollar Stores Hits Estimates in Solid Quarter

Seth Jayson, The Motley Fool
Updated

Family Dollar Stores (NYS: FDO) reported earnings on June 28. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended May 26 (Q3), 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 increased significantly.


Gross margins dropped, operating margins contracted, net margins expanded.

Revenue details
Family Dollar Stores reported revenue of $2.36 billion. The 23 analysts polled by S&P Capital IQ foresaw revenue of $2.37 billion on the same basis. GAAP reported sales were 9.6% higher than the prior-year quarter's $2.15 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
EPS came in at $1.06. The 25 earnings estimates compiled by S&P Capital IQ anticipated $1.07 per share. GAAP EPS of $1.06 for Q3 were 16% higher than the prior-year quarter's $0.91 per share.

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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 35.8%, 40 basis points worse than the prior-year quarter. Operating margin was 8.4%, 20 basis points worse than the prior-year quarter. Net margin was 5.3%, 10 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.36 billion. On the bottom line, the average EPS estimate is $0.77.

Next 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 556 members out of 603 rating the stock outperform, and 47 members rating it underperform. Among 177 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 168 give Family Dollar Stores a green thumbs-up, and nine 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 $63.95.

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The article Family Dollar Stores Hits Estimates in Solid Quarter originally appeared on Fool.com.

Seth Jaysonhad 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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