Barclays Maintains an 'Equalweight' on Family Dollar Stores (FDO); 3Q11 Earnings Preview
Tweet
Share
E-mailGet Alerts FDO Hot Sheet
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
Join SI Premium – FREE
Barclays maintains an 'Equalweight' on Family Dollar Stores Inc. (NYSE: FDO), PT $46.
Barclays analyst says, "We are maintaining our 3Q EPS forecast of $0.95, in line with consensus, and toward the midpoint of FDO's guidance of $0.92-$0.97...We estimate total sales of $2.17 billion, an increase of 8.6%, driven by comps of 5.5%. We expect the operating margin to expand by 35 bp, to 8.9%, with the gross margin up 5 bp and SG&A dollars growing by 7.5%."
"What to Do With the Stock. We continue to believe that FDO's stock is fairly valued, despite the theoretical bid from Trian Group, an activist investor. At least one other activist (Pershing Square Capital) is calling for FDO to improve its financial metrics -- specifically sales and EBIT per square foot - and achieve DG's levels. While there are many similarities between the two companies, we don't think it will be an easy task, or necessarily an appropriate one, for FDO to imitate DG in order to improve its productivity metrics. FDO has a solid strategy in place, which includes an aggressive store remodel program, and we expect them to continue to execute on it."
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 $53.09 yesterday.
Barclays analyst says, "We are maintaining our 3Q EPS forecast of $0.95, in line with consensus, and toward the midpoint of FDO's guidance of $0.92-$0.97...We estimate total sales of $2.17 billion, an increase of 8.6%, driven by comps of 5.5%. We expect the operating margin to expand by 35 bp, to 8.9%, with the gross margin up 5 bp and SG&A dollars growing by 7.5%."
"What to Do With the Stock. We continue to believe that FDO's stock is fairly valued, despite the theoretical bid from Trian Group, an activist investor. At least one other activist (Pershing Square Capital) is calling for FDO to improve its financial metrics -- specifically sales and EBIT per square foot - and achieve DG's levels. While there are many similarities between the two companies, we don't think it will be an easy task, or necessarily an appropriate one, for FDO to imitate DG in order to improve its productivity metrics. FDO has a solid strategy in place, which includes an aggressive store remodel program, and we expect them to continue to execute on it."
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 $53.09 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
- Zeo Energy Corp (ZEO) Misses Q2 EPS by 7c
- Movano (MOVE) Misses Q2 EPS by 195c
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
Trian Fund, Pershing Square Capital, Barclays, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
