Nomura Securities Maintains a 'Neutral' on Family Dollar Stores (FDO); Q2 Results Impressive
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Price: $79.39 --0%
Rating Summary:
0 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 19 Hold, 3 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on Family Dollar Stores Inc. (NYSE: FDO).
Nomura analyst, Aram Rubinson, said, "FQ2 results were impressive and we think lend credence to FDO’s claim that it can invest and grow at the same time. While EPS of $0.98 was in line and a 5.1% comp gain was already known, SG&A growth held in line with sales despite renovations and store-openings; the best performance, however, came from a 30bps increase in GM (to 35.7%), which came on top of last year's impressive 175 bps gain, and despite input and freight-related cost increases. Better fundamentals are encouraging, and, we believe, should protect downside to the shares until we gain further clarity into Trian’s proposal to acquire the company. Increase our FY11 and FY12 EPS ests to $3.13 and $3.62 from $2.96 and $3.57 respectively."
For more ratings news on Family Dollar Stores Inc. click here and for the rating history of Family Dollar Stores Inc. click here.
Shares of Family Dollar Stores Inc. closed at $52.25 yesterday.
Nomura analyst, Aram Rubinson, said, "FQ2 results were impressive and we think lend credence to FDO’s claim that it can invest and grow at the same time. While EPS of $0.98 was in line and a 5.1% comp gain was already known, SG&A growth held in line with sales despite renovations and store-openings; the best performance, however, came from a 30bps increase in GM (to 35.7%), which came on top of last year's impressive 175 bps gain, and despite input and freight-related cost increases. Better fundamentals are encouraging, and, we believe, should protect downside to the shares until we gain further clarity into Trian’s proposal to acquire the company. Increase our FY11 and FY12 EPS ests to $3.13 and $3.62 from $2.96 and $3.57 respectively."
For more ratings news on Family Dollar Stores Inc. click here and for the rating history of Family Dollar Stores Inc. click here.
Shares of Family Dollar Stores Inc. closed at $52.25 yesterday.
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