Family Dollar Stores Inc.
), the operator of self-service retail discount store chains and
an S&P 500 company, is slated to report its first-quarter
2013 financial results on January 3, 2013.
The current Zacks Consensus Estimate for the quarter is 74
cents a share, which reflects growth of 8.8% from the prior-year
quarter earnings. The estimates in the current Zacks Consensus
range between a low of 70 cents and a high of 78 cents a share.
The Zacks Consensus estimates revenue at $2,383 million for the
Management expects earnings between 69 cents and 78 cents for
the first quarter and in the band of $4.10 to $4.40 per share for
fiscal 2013. The current Zacks Consensus Estimates of 74 cents
and $4.25 for the first quarter and fiscal 2013, respectively,
dovetail with management's guidance range. No movement in the
Zacks Consensus Estimate was noticed either in the last 7 or 30
With respect to earnings surprises, Family Dollar has met as
well as topped the Zacks Consensus Estimate over the last 4
quarters in the range of 0.0% to 1.8%. Family Dollar's earnings
met the Zacks Consensus Estimate in the first, third and fourth
quarters of fiscal 2012. It topped the Estimate in the second
quarter of 2012 by 1.8%.
The economic recovery is still unstable, and bargain hunters
have no choice but to go from one shop to another to grab the
best deal, with their principal focus on essential items, such as
food. Family Dollar, with its low cost options, remains
successful in luring budget-constrained consumers amidst the
fragile economic recovery.
The company's strategic initiatives to improve merchandising,
marketing and store operations have resulted in sustained growth
in the top and bottom lines. For fiscal 2013, management expects
growth of 13% to 15% in net sales and an increase of 12.6% to
20.9% in earnings per share.
The company remains committed toward better price management,
cost containment efforts, effective inventory management, private
label offering and expanded operating hours that should augur
well for sales. Moreover, in order to enhance its market share,
Family Dollar intends to focus on both consumables and
Currently, we maintain our long-term 'Outperform'
recommendation on the stock. Moreover, Family Dollar, which
Wal-Mart Stores Inc.
Dollar General Corporation
), maintains a Zacks #1 Rank that translates into a short-term
'Strong Buy' rating.
DOLLAR GENERAL (DG): Free Stock Analysis
FAMILY DOLLAR (FDO): Free Stock Analysis
WAL-MART STORES (WMT): Free Stock Analysis
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