by Marc Bastow | October 3, 2012 10:43 am
Family Dollar Stores (NYSE:FDO[1]) announced a fourth quarter profit that met Wall Street analyst estimates, earning $80.9 million (69 cents per share) up from $79.8 million (66 cents per share) last year, right in line with estimates.
Sales rose 10.8% to $2.36 billion, also in line with analyst estimates, as the company’s move to adding more products to its shelves[2], and in particular food, health, beauty items and tobacco, have consumers looking at Family Dollar as an alternative to discount retailers[3] including Dollar General (NYSE:DG[4]) and Dollar Tree (NASDAQ:DLTR[5]). Sales at stores open more than 14 months rose 5.4%, above the company’s forecast 5% growth figure.
FDO is also following a growth plan that includes building more distribution cents, with plans to spend up to $650 million in 2013 compared to $603 million in 2012 and $345 million in 2011. FDO hopes to see earnings increase as a result of the product and expansion efforts, with the company providing a full-year 2013 earnings expectation of $4.10 to $4.40 per share, right in the middle of analyst’s $4.22 per share estimates.
FDO shares were up nearly 5% in early morning trading on the news, and is up nearly 20% year-to-date.
Written by Marc Bastow, Assistant Editor at InvestorPlace.com. As of this writing, Mr. Bastow did not hold a position in any of the aforementioned securities.
Source URL: https://investorplace.com/2012/10/family-dollar-profit-just-what-wall-street-ordered-fdo-dg-dltr/
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