Family Dollar Stores Q3 Profit Misses Estimates - Quick Facts

(RTTNews) - Family Dollar Stores, Inc. (FDO) reported that its third-quarter net income decreased to $81.15 million or $0.71 per share, from $120.94 million or $1.05 per share, last year. Adjusted net income was $96.50 million or $0.85 per share, for the quarter. The company noted that the adjusted results exclude the negative impact on net income per share of $0.14 related to the restructuring initiatives.

On average, 25 analysts polled by Thomson Reuters expected the company to report profit per share of $0.89 for the quarter. Analysts' estimates typically exclude special items.

Net sales increased 3.3% to $2.66 billion from $2.57 billion, last year. Analysts expected revenue of $2.61 billion for the quarter. Comparable store sales for the 13-week period decreased 1.8% as a result of fewer customer transactions, partially offset by an increase in the average customer transaction value, the company said.

For the fourth-quarter, the company expects comparable store sales will be approximately flat and earnings per share will be between $0.75 and $0.85, excluding approximately $0.37 related to restructuring charges. Including the restructuring charges, the company expects earnings per share will be between $0.38 and $0.48. Analysts expect the company to report fourth-quarter earnings per share of $0.78.

For the 52-week year ending August 30, 2014, the company expects earnings per share will be between $3.07 and $3.17, excluding approximately $0.51 per share related to restructuring charges. Including the restructuring charges, the company expects earnings per share will be between $2.56 and $2.66. Analysts expect the company to report fiscal year earnings per share of $3.15.

For fiscal 2014, the company expects: a low-single digit increase in net sales, excluding the impact of the extra week in fiscal 2013; and a low-single digit decline in comparable store sales.