Family Dollar (FDO) Beats on Q2 Earnings, Revenues in Line - Tale of the Tape
Family Dollar Stores Inc. ( FDO ), the self-service retail discount store chain, came out with second-quarter fiscal 2015 results, wherein earnings of 74 cents a share that came a penny ahead of the Zacks Consensus Estimate but fell 7.5% year over year.
Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2015 and fiscal 2016 has remained unchanged over the last 30 days.
In the trailing four quarters, the company underperformed the Zacks Consensus Estimate by an average of 8.7%.
Revenues: Family Dollar posted a 3% increase in net sales to $2,798.3 million from the prior-year quarter, reflecting sales growth across Consumables (up 4.6%) and Seasonal & Electronics (up 0.9%). This was offset by decline witnessed in Home Products (down 2.7%) and Apparel and Accessories (down 1.9%). Total revenue came almost in line with the Zacks Consensus Estimate.
Key Events: Family Dollar opened 161 new stores and renovated, relocated or expanded 291 stores in the first half of fiscal 2015. The company also closed 19 stores in the same period.
Family Dollar and Dollar Tree are working in tandem with FTC to get a clearance for the merger, which is expected to conclude in May 2015.
Zacks Rank: Currently, Family Dollar carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.
Check back later for our full write up on Family Dollar's earnings report!
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