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.
For the quarter ended May 31, Los Angeles-based KB Home reported a loss of $255.9 million, or $3.30 per share, compared to a loss of $148.7 million, or $1.93 per share, in the same period of the previous year. This includes a charge of $176.5 million against unsold homes and to abandon some land option contracts.
Revenue tumbled 55% to $639.1 million, driven by lower housing and land sales. Analysts polled by Thomson Financial had expected a loss of 94 cents per share on revenue of $691.3 million.
As of May 31, KB Home's backlog of homes yet to be delivered was 6,233 units, down 54% percent from the same quarter last year. Unit deliveries, meanwhile, fell 41% to 2,810 as the company attempted to scale back its inventory of homes on the market.
KB Home said its cancellation rate was 27%, down from 34% in the year-ago period and 53% in the first quarter, but new orders during the quarter fell 42% from a year ago to 4,200.
On Tuesday, both Kroger Co. (NYSE: KR), the nation's largest traditional grocer, and casual dining chain operator Darden Restaurants Inc. (NYSE: DRI) reported better-than-expected profit increases.
Cincinnati-based Kroger Co. said first-quarter profits rose 15% from the year-ago quarter to $386 million, or 58 cents per share, due in part to discounts on food, gas, and drugs that drew in budget-strapped consumers. For the quarter ended May 24, revenue climbed 12% to $23.11 billion.
Analysts polled by Thomson Financial had expected a earnings of 55 cents a share on revenue of $22.32 billion.
Kroger also reported that same-store sales rose 5.8%, excluding fuel, and 9.2% including fuel sales.
The company offered fiscal-year earnings guidance of $1.85 to $1.90 per share, compared to the analysts' forecast of $1.90 per share.
Kroger shares rose $1.82 Tuesday to $27.82, then fell in after-hours trading. The shares have risen 10.2% in the past three months.
Food giants General Mills Inc. (NYSE: GIS) and ConAgra Foods Inc. (NYSE: CAG) are scheduled to report fiscal fourth-quarter earnings this week. While cereal-maker General Mills is expected by analysts surveyed by Thomson Financial to post higher profits, frozen-foods packager ConAgra is expected to report a profit decline.
General Mills is expected to report net income of 70 cents per share, up 11.4% from the same period of last year, on revenue of $3.4 billion. The company has tended to provided positive surprises recently -- by eight cents, or 10.4%, in the previous quarter.
Minneapolis-based General Mills is the second largest cereal-maker in the U.S., after Kellogg Co. (NYSE: K). Its other brands include Gold Medal flour, Bisquick, Hamburger Helper, Pop Secret, and Yoplait. The company had revenues in the past year of $12.4 billion and net income $1.1 billion. Its long-term EPS growth forecast is only 8.7%, much less than the industry average but about the same as Kellogg's. The consensus recommendation of analysts remains to buy General Mills.
Shares reached a 52-week high of $63.91 in early June, and closed Monday at $63.40.The share price is up 11.5% since the beginning of the year. It trades at a P/E ratio of 16.60.
Though the quarter is winding down, there are still earnings reports to come, including Walgreen Co. (NYSE: WAG) and Kroger Co. (NYSE: KR). Both companies are expected to report profit growth this coming week.
Walgreen is expected by analysts surveyed by Thomson Financial to report third-quarter earnings of 59 cents per share, up 6.8% from the same period of last year, on revenue of $15.1 billion. The company has provided positive surprises in four of the past five quarters -- by two cents in the previous quarter.
Based in Deerfield, Ill., Walgreen is the largest drug store chain in the U.S. in terms of sales, and has more than 6,200 stores in the U.S. and Puerto Rico. In the past year, the company's revenues were $53.7 billion and its net income totaled $2.0 billion. Its long-term EPS growth forecast is 14.0%, which is less than the retail industry average, as well as less than that of rival CVS Caremark (NYSE: CVS). The consensus recommendation of analysts has recently shifted from hold to buy Walgreen.
The share price is up 4.0% since the beginning of the year, and up from 11.6% from a year ago. It trades at a P/E ratio of 20.68. Shares closed Friday at $41.35.
The fourth quarter turned out to be a good one for National Semiconductor Corp. (NASDAQ: NSM) and Brown-Forman Corp. (NYSE: BF.B), producer of Jack Daniels Tennessee Whiskey. On Thursday, both companies reported results that beat Wall Street forecasts.
For the quarter ended May 5, National Semiconductor, the Santa Clara, Calif.-based chip maker, reported net income of $83.2 million, or 34 cents per share. Revenue rose to $462 million from $455.9 million in the year-ago period.
Analysts polled by Thomson Financial expected income of 26 cents per share on revenue of $449.5 million.
For the full fiscal year, National Semiconductor recorded net income of $332.3 million, or $1.26 per share, and revenue slipped to $1.89 billion from $1.93 billion.
The company also forecast fiscal first-quarter revenue of $460 million to $475 million, compared to analysts' expectations of $451.2 million.
Shares of National Semiconductor rose 78 cents, or 3.6%, to close at $22.66, and climbed another $2.13, or 9.4% in after-hours trading.
On Thursday, Dr Pepper Snapple Group Inc. (NYSE: DPS), which spun off from Cadbury Schweppes (OTC: CSGWF) last month, and canned foods manufacturer Del Monte Foods Co. (NYSE: DLM) both reported double-digit profit growth for their fourth quarters, but still missed analysts' expectations. Smithfield Foods Corp. (NYSE: SFD), the U.S.'s largest hog producer and pork processor, said its first-quarter profits tumbled, hurt by rising grain costs and falling hog prices.
Plano, Texas-based Dr Pepper reported that its first-quarter earnings surged 38% from a year ago to $95 million, or 38 cents per share, as the company raised prices to offset lower volume and rising commodity costs. Adjusted for a restructuring charge, earnings were 36 cents per share. Sales for the three months ended March 31 grew 3% to $1.31 billion.
Analysts surveyed by Thomson Financial had expected earnings of 41 cents per share on revenue of $1.27 billion.
Dr Pepper shares rose more than a dollar, or 4%, in morning trading to $25.00, just shy of the price at which the stock began trading last month.
Restaurant operator Bob Evans Farms Inc. (NASDAQ: BOBE) and apparel designer and retailer Guess Inc. (NYSE: GES) both reported earnings growth on Tuesday that beat analysts' expectations.
Bob Evans said its fiscal fourth-quarter profit rose 5% from the year-ago period to $16.1 million, or 52 cents per share. Revenue rose 4% to $436.4 million. Analysts polled by Thomson Financial had estimated earnings of 41 cents per share on sales of $441.5 million.
The company said results were boosted by increases in both its restaurant and food products segments. Same-store sales at Bob Evans brand restaurants rose 1.7%. And the quarter included a pretax gain of $700,000 from the sale of real estate assets.
For the year, Bob Evans reported income of $64.9 million, or $1.95 per share, compared with $60.5 million, or $1.66 per share, in the prior year. Revenue rose 5% to $1.74 billion.
Shares rose 85 cents, or 3%, to close at $29.09. Shares are up 8.3% year to date.
Discount-store operator 
On Thursday, home builder 
Cincinnati-based Kroger Co. said 
General Mills is expected to report net income of 70 cents per share, up 11.4% from the same period of last year, on revenue of $3.4 billion. The company has tended to provided 
Walgreen is expected by analysts surveyed by Thomson Financial to report third-quarter earnings of 59 cents per share, up 6.8% from the same period of last year, on revenue of $15.1 billion. The company has provided 
On Thursday, 
The week in preview: New quarter earnings kick-off
Comfort Zone Investing: Keep your recovery expectations real
Will Americans have to slim down to fit into their cars?
