Family Dollar Stores
The 10-second takeaway
For the quarter ended Nov. 26 (Q1), Family Dollar Stores met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased, and earnings per share increased significantly.
Gross margins dropped, operating margins improved, net margins were steady.
Family Dollar Stores recorded revenue of $2.1 billion. The 21 analysts polled by S&P Capital IQ looked for net sales of $2.2 billion. Sales were 7.6% higher than the prior-year quarter's $2.0 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
EPS came in at $0.68. The 23 earnings estimates compiled by S&P Capital IQ anticipated $0.68 per share. GAAP EPS of $0.68 for Q1 were 17% higher than the prior-year quarter's $0.58 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 35.3%, 70 basis points worse than the prior-year quarter. Operating margin was 6.3%, 20 basis points better than the prior-year quarter. Net margin was 3.7%, about the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $2.5 billion. On the bottom line, the average EPS estimate is $1.13.
Next year's average estimate for revenue is $9.3 billion. The average EPS estimate is $3.66.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 543 members out of 592 rating the stock outperform, and 49 members rating it underperform. Among 186 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 173 give Family Dollar Stores a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Family Dollar Stores is hold, with an average price target of $56.26.
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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 of Motley 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.