Family Dollar Stores (NYSE: 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.
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.
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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