Family Dollar beats Street view, sending shares up
Family Dollar Stores Inc
This quarter began on November 29, and Family Dollar estimated that sales at stores open at least a year rose 4 percent in the busy holiday shopping month of December.
The North Carolina retailer, which sells most of its merchandise for below $10, said net income rose 14 percent to $67.6 million, or 49 cents per share, in the first quarter that ended November 28 from $59.3 million, or 42 cents per share, a year earlier.
Analysts on average were expecting earnings of 47 cents per share, according to Thomson Reuters I/B/E/S.
Last month, Family Dollar reported that first-quarter net sales rose 3.9 percent to $1.82 billion, while same-store sales rose 2.4 percent -- below its estimate for growth of 3 percent to 5 percent.
At the time, it said it still expected earnings to fall within its forecast of 45 cents to 50 cents per share.
For the second quarter, the retailer forecast same-store sales would rise by 2 percent to 4 percent, and that earnings per share would range from 65 cents to 70 cents. Wall Street analysts are forecasting a profit of 64 cents per share during the current quarter.
For the full fiscal year, Family Dollar forecast net sales will rise 4 percent to 6 percent, with earnings per share ranging from $2.15 to $2.35.
The company's shares rose $1.51, or 5.5 percent, to $29.00 in premarket trading.
(Reporting by Phil Wahba and Nicole Maestri; Editing by Lisa Von Ahn)
© Copyright Thomson Reuters 2024. All rights reserved.