Family Dollar Stores Earnings Are on Deck

Family Dollar Stores (NYS: FDO) is expected to report Q2 earnings around April 10. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Family Dollar Stores's revenues will increase 17.4% and EPS will grow 6.1%.

The average estimate for revenue is $2.89 billion. On the bottom line, the average EPS estimate is $1.22.


Revenue details
Last quarter, Family Dollar Stores booked revenue of $2.42 billion. GAAP reported sales were 13% 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
Last quarter, EPS came in at $0.69. GAAP EPS of $0.69 for Q1 were 1.5% higher than the prior-year quarter's $0.68 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 34.1%, 120 basis points worse than the prior-year quarter. Operating margin was 5.2%, 90 basis points worse than the prior-year quarter. Net margin was 3.3%, 40 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $10.54 billion. The average EPS estimate is $3.99.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 572 members out of 624 rating the stock outperform, and 52 members rating it underperform. Among 194 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 182 give Family Dollar Stores a green thumbs-up, and 12 give it a red thumbs-down.

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 $72.39.

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The article Family Dollar Stores Earnings Are on Deck originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. TMFDisclosureHere

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