Family Dollar Q3 Profit Down; Tightens FY13 EPS View - Quick Facts

(RTTNews) - Discount retailer Family Dollar Stores Inc. (FDO) reported that its third-quarter of fiscal 2013 net income declined to $120.9 million or $1.05 per share from $124.5 million or $1.06 per share in the third quarter of fiscal 2012. Analysts polled by Thomson Reuters expected the company to report earnings of $1.03 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the third quarter, increased 9.0% to $2.57 billion from $2.36 billion in the third quarter of fiscal 2012. Twenty seven analysts had consensus revenue estimate of $2.57 billion for the quarter.

Comparable store sales in the quarter increased 2.9%. The increase in comparable store sales was a result of an increase in the average customer transaction value and higher customer traffic. Sales were strongest in the Consumables category, which increased 14.8% during the quarter, driven primarily by strong growth in food, health and beauty aids, and tobacco.

The company expects that comparable store sales in the fourth quarter of fiscal 2013 will increase around 2%. The company believes that earnings per share will be between $0.82 and $0.87 per share compared with $0.69 per share in the fourth quarter of fiscal 2012. Included in the results for the fourth quarter of fiscal 2012 was a litigation charge of $0.06 per share. Analysts expect the company to report earnings of $0.85 per share for the fourth-quarter.

The company now expects that earnings per share in fiscal 2013 will be between $3.77 and $3.82 compared to prior estimate of $3.73 and $3.93 per share. The outlook assumes comparable store sales growth of 3 percent and 4 percent. Analysts expect the company to report earnings of $3.77 per share for fiscal 2013.