Discount retailer, Family Dollar Stores, Inc.(FDO) reported a slight increase in earnings, but missed analysts expectations on Thursday.
The Matthews, NC based company reported first quarter earnings of $80.3 million, or 69 cents per share, down slightly from $80.4 million, or 68 cents a share last year. On average, analysts expected to see earnings of 75 cents per share.
Revenue came in at $2.42 billion for the quarter, an 11% increase from last years revenue of $2.15 billion. Analysts estimated revenue of $2.38 billion.
Looking ahead, the company reported that they are expecting second quarter EPS in the range of $1.18 to $1.28, which is below analysts estimate of $1.39.
FDO noted, “the holiday selling season proved to be more challenging than we expected as customers faced increasing financial uncertainty.”
Family Dollar shares were down -$5.06, or -7.9% during premarket trading Thursday. The stock has increased 11% in the past year.
The Bottom Line
Shares of Family Dollar Stores (FDO) have a 1.31% dividend yield, based on last night’s closing stock price of $64.04. The stock has technical support in the $58 price area. If the shares can firm up, we see overhead resistance around the $65-$69 price levels.
Family Dollar Stores, Inc.(FDO) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.
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