Shares of thrift retailer Family Dollar (NYSE: FDO) have been trading strongly higher this morning after the company announced strong second quarter earnings this morning.We mentioned in our earnings preview yesterday that analysts were expecting to see earnings of $0.60 per share, and that is exactly what Family Dollar delivered.
It's hard to avoid news these days about company's struggling in the current economic landscape, but for Family Dollar, things are going just fine, with net income increasing by 32.9%. Consumers have been trying to tighten up their budgets over the past year, and that has led to increased traffic at Family Dollar, where shoppers can often get more bang for their buck.
Revenues were also higher, marking an 8.7% year over year increase. We also mentioned yesterday that the company had already announced that same store sales were up by 6.4% during the quarter, showing a nice increase in consumer traffic.
Wall Street has been in love with Family Dollar recently, and that should continue as the company continues to offer a strong outlook. It raised its outlook for the current quarter to a range between $0.54 and $0.58, which is well ahead of the $0.50 per share that analysts had been predicting.
Traders have rewarded the company today on Wall Street, pushing shares up 5.2% to $34.37, up $1.71. With the stock setting a new 52 week high today it may be a bit pricey to jump in right now on the stock, but long term this is one company that should continue to do well through the rest of the year while Americans continue to watch their budgets.
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Reader Comments (Page 1 of 1)
4-08-2009 @ 4:35PM
Sergeant said...
It's a sad commentary on the American economy when a store like Family Dollar is one of the few businesses doing well. Clearly, when there are more poor people, stores like this will make big profits. Gotta love capitalism!
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