Family Dollar Stores
The 10-second takeaway
For the quarter ended March 2 (Q2), Family Dollar Stores met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share grew.
Margins shrank across the board.
Revenue details
Family Dollar Stores booked revenue of $2.89 billion. The 24 analysts polled by S&P Capital IQ expected a top line of $2.89 billion on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $2.46 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 $1.21. The 26 earnings estimates compiled by S&P Capital IQ forecast $1.22 per share. GAAP EPS of $1.21 for Q2 were 5.2% higher than the prior-year quarter's $1.15 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 33.4%, 150 basis points worse than the prior-year quarter. Operating margin was 7.5%, 150 basis points worse than the prior-year quarter. Net margin was 4.8%, 70 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter's average estimate for revenue is $2.57 billion. On the bottom line, the average EPS estimate is $1.03.
Next year's average estimate for revenue is $10.51 billion. The average EPS estimate is $3.78.
Investor sentiment
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 $64.68.
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