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Family Dollar Stores, Inc. (FDO) operates a chain of self-service retail discount stores primarily for low and middle income consumers in the United States. The company offers consumables, including household chemicals, paper products, food products, health and beauty aids, hardware and automotive supplies, and pet food and supplies; and home products comprising domestics, which include blankets, sheets, and towels, as well as house wares, giftware products, and home decor products.

It is scheduled to report its Q3 2012 results on June 28, 2012, before the market opens.

Technical Overview


Key Metrics
  • Market Cap: 8.37B
  • 52-week trading range: 44.42 - 74.73
  • Trailing P/E: 21.12
  • Forward P/E: 16.92
  • Price/Sales: 0.94
  • Price/Book: 6.88
  • PEG Ratio: 1.33
  • Total Debt: 532.45M
  • Annual dividend yield: 1.10%
  • Return on Equity: 33.83%
  • Return on Assets: 13.77%

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last three quarters. In the last quarter it reported $1.15 EPS, beating analyst estimates of $1.13.

The consensus EPS is $1.07 based on 26 analysts' estimates, up from $0.91 a year ago. Revenue estimates are $2.37B, up from $2.15B a year ago. The median target price by analysts for the stock is $69.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On June 14, 2012, the company was downgraded from Overweight to Equal Weight at Barclays.
  • On March 29, 2012, Barclays reiterated Overweight rating for the company.
  • On March 26, 2012, the company was upgraded from Neutral to Buy at MKM Partners.

Latest Developments

  • On June 4, 2012, Family Dollar Stores, Inc. announced that it has entered into a multi-year agreement with Coinstar, Inc.'s CSTR -0.47% Redbox, America's destination for entertainment, to provide Redbox(R) kiosks at Family Dollar locations across the U.S.
  • On May 10, 2012, NetSpend Holdings Inc announced that it has entered into a distribution agreement to sell the NetSpend Visa Prepaid Debit Card at Family Dollar Stores, Inc.
  • On May 10, 2012, Family Dollar Stores, Inc. announced that the Company's Board of Directors has declared a regular quarterly cash dividend on the Company's common stock of $0.21 per share, payable Friday, July 13, 2012, to shareholders of record at the close of business on Friday, June 15, 2012.
  • On May 4, 2012, Family Dollar Stores, Inc. announced that it has entered into a strategic partnership with McLane, the nation's leading provider of grocery and food service supply chain solutions. Beginning in September, this partnership will enable Family Dollar to offer customers a broader selection of merchandise, including refrigerated and frozen food, across the retailer's more than 7,200 locations in 45 states.
  • On April 23, 2012, Family Dollar Stores, Inc. announced Dorlisa K. Flur, Vice Chair - Strategy and Chief Administrative Officer, intends to leave the Company to pursue other interests, effective May 2, 2012.
  • On April 16, 2012, Family Dollar Stores, Inc. announced it has agreed in terms to a multi-year partnership with PepsiCo, Inc., to sell its beverages in its 7,100 stores across 45 states.
  • On April 10, 2012, Family Dollar Stores, Inc. announced that it has named Mary A. Winston to the position of Executive Vice President and Chief Financial Officer.
  • On March 28, 2012, Family Dollar Stores, Inc. announced that for fiscal 2012, it expects earnings per share (EPS) in the range of $3.55 and $3.75 and comparable store sales of between 5% and 6%.
  • On January 19, 2012, Family Dollar Stores, Inc. announced that the Company's Board of Directors has declared a regular quarterly cash dividend on the Company's common stock of $0.21 per share, payable Friday, April 13, 2012, to shareholders of record at the close of business on Thursday, March 15, 2012.

Competitors

Family Dollar Stores Inc. operates in Discount, Variety Stores industry. The company could be compared to Dollar General Corporation (DG), Dollar Tree, Inc. (DLTR), J. C. Penney Company, Inc. (JCP), and Wal-Mart Stores Inc. (WMT). Below is the table comparison of the most important ratios between these companies and the industry.

Below is the chart comparison with the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

(click to enlarge)FDO Chart

FDO data by YCharts

Competitors' Latest Development

  • On June 12, 2012, The Economic Times reported that Wal-Mart Stores, Inc. plans to snap ties with companies that supply products to its stores if they are involved in any kind of corrupt practices, making it the first retail company to undertake such a stringent initiative in India.
  • On June 11, 2012, Reuters reported that New York City's pension funds became the latest group to file a derivative lawsuit against Wal-Mart Stores Inc based on reported allegations of bribery in Mexico and a possible cover-up by Wal-Mart officials.
  • On June 4, 2012, Dollar General Corp. announced that it continues to expect total sales for fiscal 2012 to increase 8% to 9% over the 53 week fiscal 2011, or 10% to 11% on a comparable 52-week basis.
  • On May 17, 2012, Wal-Mart Stores Inc announced that for second quarter of 2013, it expects diluted earnings per share from continuing operations to range between $1.13 and $1.18.
  • On May 17, 2012, Dollar Tree, Inc. announced that for the second quarter of 2012, it expects sales to be in the range of $1.66 billion to $1.70 billion, based on low to mid single digit positive comparable store sales and diluted earnings per share to be in the range of $0.87 to $0.93.
  • On May 15, 2012, J C Penney Company Inc reaffirmed fiscal 2012 earnings guidance and expects earnings per share of $2.16 per share which excludes non-cash qualified pension expense, restructuring charges and markdown reserves as the Company transition merchandise assortment.
  • On May 8, 2012, Robbins Geller Rudman & Dowd LLP announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Middle District of Tennessee on behalf of purchasers of Wal-Mart Stores, Inc.
  • On May 3, 2012, J C Penney Company Inc announced that Ken Hannah has been named Chief Financial Officer effective May 7,2012.
  • On April 25, 2012, Newman Ferrara LLP announced that it has begun an investigation into whether certain officers and directors of Wal-Mart Stores, Inc. ("Wal-Mart" or the "Company") violated the Foreign Corrupt Practices Act in connection with alleged bribery payments at the Company's Mexican subsidiary.
  • On April 25, 2012, Law Offices of Howard G. Smith announced that it is investigating potential claims on behalf of shareholders of Wal-Mart Stores, Inc. ("Wal-Mart" or the "Company") concerning possible breaches of fiduciary duties by the Company or its fiduciaries.
  • On April 23, 2012, Shareholder Rights Law Firm Johnson & Weaver, LLP announced that it is investigating whether certain officers and directors of Wal-Mart Stores Inc ("Wal-Mart") breached their fiduciary duties and committed violations of the Foreign Corrupt Practices Act ("FCPA").
  • On April 23, 2012, Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announced that the firms are investigating legal claims against the officers and Board of Directors of Wal-Mart Stores, Inc., for potential breaches of fiduciary duties and violations of the Foreign Corrupt Practices Act (OTCPK:FCPA).
  • On April 12, 2012, Reuters reported that J.C. Penney Co Inc said on April 11, 2012 that Michael Dastugue is leaving on April 13, 2012 after just 15 months as chief financial officer as the department store chain continues to work on its overhaul under its new chief executive.
  • On April 6, 2012, Reuters reported that J.C. Penney Co Inc laid off about 1000 employees at its headquarters in Plano, Texas and Pittsburgh customer call center, as part of its previously announced cost cutting measures, the Company said in a regulatory filing on April 06, 2012.
  • On March 23, 2012, J.C. Penney Co Inc announced that its Board of Directors declared a quarterly dividend on the Company's common stock of $0.20 per share. The dividend is payable May 1, 2012, to Company stockholders of record at the close of business on April 10, 2012.
  • On March 22, 2012, Dollar General Corp. announced that for fiscal 2012, it expects total sales to increase 10% to 11% on a comparable 52-week basis, Same-store sales, based on a comparable 52-week period, are expected to increase 3% to 5%, operating profit (EBIT) is expected to be between $1.60 and $1.65 billion.
  • On February 24, 2012, J.C. Penney Co Inc announced that as previously announced, the Company expects fiscal 2012 earnings to meet or exceed $1.59 per share. This includes approximately $15 million of restructuring charges to complete the realignment of the Company's supply chain operations and approximately $197 million of non-cash qualified pension plan expense.
  • On January 5, 2012, J.C. Penney Co Inc announced that for the fourth quarter of 2011, it expects to report a loss in the range of $0.45 to $0.30 per share on a GAAP reporting basis, reflecting lower sales and higher markdown activity than anticipated throughout the quarter as well as the following items.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Family Dollar Stores