Family Dollar Stores, Inc. (FDO) Misses 3Q14 EPS; Cannacord Maintains Hold

0
Family Dollar Stores, Inc. (FDO) Misses 3Q14 EPS; Cannacord Maintains Hold
geralt / Pixabay

In a research note published yesterday, Canaccord Genuity analyst Laura Champine Maintained a Hold rating on Family Dollar Stores, Inc. (NYSE:FDO) with a price target of $49 as the company’s EPS missed expectations for a third straight quarter.

Champine noted, “The gross margin came in 10bps below our estimate, and the EPS miss would have been worse if not for a lower tax rate which added $0.04 of upside. We are maintaining our neutral stance as the core low-income customer remains pressured, and Family Dollar Stores, Inc. (NYSE:FDO) is still in the very early stages of its strategic overhaul”.

Consistency is what makes the top 50 best-performing hedge funds so strong

Every month and quarter, multiple reports on average hedge fund returns are released from several sources. However, it can be difficult to sift through the many returns to uncover the most consistent hedge funds. The good news is that Eric Uhlfelder recently released his "2022 Survey of the Top 50 Hedge Funds," which ranks the Read More

On a more positive note, Champine wrote, “Family Dollar Stores, Inc. (NYSE:FDO)’s plans suggest penetration of lower-margin consumables will continue to increase in FY15. This includes expanded coolers and the rollout of alcohol in stores. Consumables penetration has increased 130bps over the trailing 12-month period, and the category now accounts for 73.3% of total sales. We expect sustained consumables gains will continue to pressure gross margins”.

According to TipRanks.com, which measures analysts and bloggers success rate based on how their calls perform, analyst Laura Champine currently has a one-year average return of 5.7% and a 48% success rate. Champine is ranked #889 out of 3211 analysts.

Family Dollar Stores

 

Updated on

TipRanks was founded in 2012 with the goal of giving power back to the individual investor. Our hope is that by making analyst performance data easily available and highly visible to the investing public, TipRanks will not just help save others from our investing mistakes, but will also bring back accountability, objectivity, and transparency to the business of stock picking and analyst reports. TipRanks is proudly unaffiliated with any investment firm.
Previous article Reasons To Own Gold [INFOGRAPHIC]
Next article Never Buy Expensive Stocks: Analyzing Valuation Measures

No posts to display