Goldman Reiterates Buy on Family Dollar (FDO) Ahead of Wednesday's Earnings
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Price: $64.08 +0.80%
Rating Summary:
6 Buy, 18 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
6 Buy, 18 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Trade FDO Now!
Ahead of Q4 earnings on Wednesday, Goldman Sachs reiterated a Buy rating on Family Dollar Stores Inc. (NYSE: FDO) with a price target of $75.00.
"While the implementation of FDO’s plethora of sales-driving initiatives will likely limit a positive 4Q catalyst, we expect accelerating double-digit EBITDA and EPS growth throughout FY13 as consumers begin to respond to the improved offering and as margin pressures ease," said Goldman analyst Stephen Grambling.
"Our $0.76 EPS estimate sits slightly ahead of consensus’ $0.75 but in-line with the midpoint of management guidance of $0.71-$0.81. Our 4Q12 estimate is based on 5.8% comp growth, up from 3Q’s 5%, driven primarily by strength in consumables. However, with FDO still rolling out multiple initiatives during 4Q, we expect 5bp of EBIT margin contraction as 50bp of gross margin pressure overshadows 45bp of SG&A leverage," added Grambling.
For an analyst ratings summary and ratings history on Family Dollar Stores Inc. click here. For more ratings news on Family Dollar Stores Inc. click here.
Shares of Family Dollar Stores Inc. closed at $66.30 yesterday, with a 52 week range of $49.17-$74.73.
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"While the implementation of FDO’s plethora of sales-driving initiatives will likely limit a positive 4Q catalyst, we expect accelerating double-digit EBITDA and EPS growth throughout FY13 as consumers begin to respond to the improved offering and as margin pressures ease," said Goldman analyst Stephen Grambling.
"Our $0.76 EPS estimate sits slightly ahead of consensus’ $0.75 but in-line with the midpoint of management guidance of $0.71-$0.81. Our 4Q12 estimate is based on 5.8% comp growth, up from 3Q’s 5%, driven primarily by strength in consumables. However, with FDO still rolling out multiple initiatives during 4Q, we expect 5bp of EBIT margin contraction as 50bp of gross margin pressure overshadows 45bp of SG&A leverage," added Grambling.
For an analyst ratings summary and ratings history on Family Dollar Stores Inc. click here. For more ratings news on Family Dollar Stores Inc. click here.
Shares of Family Dollar Stores Inc. closed at $66.30 yesterday, with a 52 week range of $49.17-$74.73.
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