Discount-store operator Family Dollar Stores Inc. (NYSE: FDO) reported that its fiscal third-quarter profit rose as more consumers sought bargains on food and other items. And Apollo Group Inc. (NASDAQ: APOL) said Tuesday its fiscal third-quarter profit rose as increased advertising of its educational programs attracted new students.
Family Dollar earnings for the quarter ended May 31 rose 7% from the year-ago period to $64.7 million, or 46 cents per share. Total revenue rose 2.9% to $1.7 billion, with same-store sales rising only 0.1%.
Analysts polled by Thomson Financial had expected a profit of 40 cents per share on revenue of $1.7 billion.
The company said a rise in the average amount customers spent per transaction helped offset lower store traffic, and that cost and inventory controls also benefited results.
Family Dollar raised its fiscal fourth-quarter guidance by a penny.
Shares rose $2.81 to $23.10 in morning trading. The share price is up 16.9% year to date.
Apollo Group, which owns the University of Phoenix, reported that its net income totaled $139.1 million, or 85 cents per share, compared with earnings of $131.4 million, or 75 cents per share, in the same period of last year. Excluding special items, the company said it made $140.1 million, or 85 cents a share.
The Phoenix-based company said it expanded enrollment and became more efficient at collecting tuition. Quarterly revenue rose 14% to $835.2 million.
Analysts surveyed by Thomson Financial had been looking for earnings of 78 cents per share and sales of $806.9 million.
Shares jumped $7.24, or 15.7%, to $53.50 in after-hours trading Tuesday, and continued to rise to $57.94 Wednesday morning. The share price has risen 30.7% in the past three months.
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