On June 22, Family Dollar (NYSE:FDO) released Q3 2006 earnings for the period ended May 27.

  • Sales increased nearly 10% from the prior year.
  • Net profits rose by a smaller amount: 5.8%.
  • Reduced share count boosted EPS growth to 15% over the prior-year quarter.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2006

Q3 2005

Change

Sales

$1,570,000

$1,569,516

$1,427,966

9.9%

Net Profit

--

$56,914

$53,774

5.8%

EPS

$0.35

$0.37

$0.32

15.6%

Diluted Shares

154,566

167,160

(7.5%)



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2006

Q3 2005

Change*

Gross Margin

33.62%

33.57%

0.05

Operating Margin

5.88%

5.95%

(0.07)

Net Margin

3.63%

3.77%

(0.14)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2006

Q3 2005

Change

Cash + ST Invest.

$168,145

$179,039

(6.1%)

Accounts Rec.

No Data

No Data

N/A

Inventory

$1,028,221

$990,828

3.8%



Liabilities

Q3 2006

Q3 2005

Change

Accounts Payable

$918,281

$807,513

13.7%

Long-Term Debt

$250,000

$0

N/A



Learn the ways of the balance sheet.

Cash Flow Highlights

No data provided. (Booo!)

Find out why Fools always follow the money.

Related Companies:

  • Wal-Mart (NYSE:WMT)
  • Dollar Tree (NASDAQ:DLTR)
  • Dollar General (NYSE:DG)
  • 99 Cents Only (NYSE:NDN)
  • Target (NYSE:TGT)

Family Dollar is aMotley Fool Stock Advisorrecommendation, and Wal-Mart and Dollar Tree are Inside Valuepicks. You can see why with a free trial of either.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

At the time of publication, Seth Jayson had no positions in any company mentioned here. Fool rules are here.