New User:

-or-
Username:
Password:
Forgot your password?

Stock Market & Financial Investment News

News Breaks
March 22, 2013
10:58 EDTWMT, DG, FDOFamily Dollar falls after analysts express opposite views
Two research firms expressed different opinions on Family Dollar (FDO) in notes to investors earlier today. Deutsche Bank upgraded the stock to Buy from Hold, while Citigroup downgraded the shares to Neutral from Buy. Fears about future declines in the discount retailer's margins have probably peaked, according to Deutsche Bank analyst Paul Trussell. The company's selling, general and administrative expenses disappointed investors in the first quarter of the company's fiscal year, but investors are now well aware of the headwinds that caused the situation and the problems should ease going forward, Trussell believes. Meanwhile, fears about a price war among dollar store companies is overdone, and Family Dollar is taking market share from Wal-Mart (WMT), according Deutsche's analyst, who added that Family Dollar has begun to benefit from tax refunds. Trussell expects the company's same-store sales to rise 4.3% in the second half of the year and he set a $71 price target on the shares. Conversely, Citigroup analyst Deborah Weinswig expects Family Dollar to have more difficulty beating analysts' earnings expectations going forward. The retailer's margins are likely to be hurt by stronger sales of less profitable items, according to the Citi analyst. Moreover, Family Dollar's "single store format" is hurting the company's ability to compete against Dollar General (DG), which has two expanded store formats, Weinswig wrote. She trimmed her price target on Family Dollar to $65 from $69. In mid-morning trading, Family Dollar fell 95c, or 1.5%, to $60.80.
News For FDO;DG;WMT From The Last 14 Days
Check below for free stories on FDO;DG;WMT the last two weeks.
Sign up for a free trial to see the rest of the stories you've been missing.
1 | 2 | 3 | all recent news | >>
April 10, 2014
13:14 EDTFDO, DG, WMTFamily Dollar slides after holiday disappointment prompts store closures
Shares of discount retailer Family Dollar (FDO) are falling after the company reported second quarter earnings per share and revenue that fell below expectations, along with third quarter and FY14 projections that are lower than analysts' consensus. WHAT'S NEW: This morning, Family Dollar reported second quarter earnings per share of 80c, which fell below analysts consensus of 90c. The company reported second quarter revenue of $2.72B, while analysts projected $2.77B. Family Dollar, which reported that its second quarter same-store-sales decreased by 3.8%, said the holiday season was challenged by "a more promotional competitive environment and a more financially constrained consumer" and that its results were also significantly impacted by severe winter weather like many retailers. The company expects third quarter earnings per share excluding-items to be 85c-95c, while analysts project a 98c consensus. Family Dollar said that it sees FY14 earnings per share excluding items to be $3.05-$3.25, which is at the lower end of analysts' estimations. Family Dollar noted that it expects to close nearly 370 underperforming stores in the second half of FY14 and slow new store growth beginning in FY15. WHAT'S NOTABLE: During Family Dollar's earnings conference call, the company said that it plans to slow square footage growth in the beginning of FY14 and said that it recently cut about 10% of its corporate workforce. ANALYST OPINION: Wells Fargo analyst Matt Nemer said Family Dollar's third quarter negative comp guidance and commentary about a challenging macro environment could pressure its own shares as well as those of its peers Dollar General (DG) and Dollar Tree (DLTR). However, Family Dollar's store closures combined with a decrease in future store growth could ultimately have positive implications for its competitors, Nemer added. On March 4, Credit Suisse said Family Dollar's underperformance compared to Dollar General and significant earnings possibilities gives the rationale for a potential merger of the two. On February 19, Credit Suisse analyst Michael Exstein suggested that Wal-Mart (WMT) should consider acquiring Family Dollar as a way to "jumpstart" its small store effort. CNBC's David Faber reported the same morning that Exstein published his note that Family Dollar was not holding any talks about selling itself at that time. PRICE ACTION: During afternoon trading, shares of Family Dollar decreased $1.54, or 2.61%, to $57.53, Dollar Tree dropped 2.5%, and Dollar General fell about 1.5%.
11:15 EDTFDOOptions with decreasing implied volatility: YONG STZ BBBY FDO EPB
10:46 EDTFDOFamily Dollar says continues to be opportunistic with share repurchases
10:27 EDTFDOFamily Dollar says search for president, COO is 'under way'
Says last few quarters have been "challenging." Says holiday season was challenged by a more promotional environment and a more financially constrained consumer. Sees opportunities to improve execution, increase relevance. Plans to slow square footage growth in the beginning of FY15. The company says it is on track to open approximately 525 stores this year, 350-400 stores next year. Says 18 storms resulted in 60 days negatively impacted by winter weather in Q2. Sees gross margin for Q3 to be similar to Q2. Sees charge in Q3 of about $4M related to employee severance costs. Sees SG&A expense to be develeraged in Q3. Sees gross margin to decline in FY14. Expects SG&A will deleverage for FY14. Expects tax rate for FY14 to be 36%-36.5%.
10:21 EDTFDOFamily Dollar says recently cut about 10% of corporate workforce
Sees charge in Q3 of about $4M related to employee severance costs. Comments made on the Q2 earnings conference call.
07:11 EDTFDOFamily Dollar says winter weather had at least 5c negative impact to Q2 EPS
Family Dollar Stores CEO Howard Levine said, ďOur second quarter results did not meet our expectations. The 2013 holiday season was challenged by a more promotional competitive environment and a more financially constrained consumer. In addition, like many retailers, our second quarter results were significantly impacted by severe winter weather, which resulted in numerous store closings, disrupted merchandise deliveries and higher than expected utility and store maintenance expenses. Notwithstanding the macro-economic pressure, competitive environment and severe weather, we are not satisfied with our results, and we hold ourselves accountable for improving our performance. To that end, we have initiated an in-depth business review to identify opportunities to strengthen our value proposition, increase operational efficiencies and improve financial performance.Ē The company estimates that the negative financial impact in Q2 from the adverse winter weather was at least 5c of earnings per diluted share.
07:09 EDTFDOFamily Dollar sees FY14 EPS ex-items $3.05-$3.25, consensus $3.38
Subscribe for More Information
07:07 EDTFDOFamily Dollar sees Q3 EPS ex-items 85c-95c, consensus 98c
Subscribe for More Information
07:05 EDTFDOFamily Dollar to close about 370 stores, take other actions to reduce costs
Subscribe for More Information
07:03 EDTFDOFamily Dollar reports Q2 EPS 80c, consensus 90c
Subscribe for More Information
06:13 EDTWMTWal-Mart to carry Wild Oats organic food items
Subscribe for More Information
April 9, 2014
15:19 EDTFDONotable companies reporting before tomorrow's open
Subscribe for More Information
09:20 EDTDGBofA/Merrill's retail analysts hold an analyst/industry conference call
Subscribe for More Information
09:10 EDTWMTWal-Mart to purcahse energy-efficient LED ceiling lighting fixtures from GE
Subscribe for More Information
April 8, 2014
06:17 EDTWMTWal-Mart to expand in India, add e-commerce, wholesale stores, WSJ reports
Subscribe for More Information
April 4, 2014
13:29 EDTFDOFamily Dollar April volatility elevated into Q2
Subscribe for More Information
08:02 EDTWMTSam's Club extends contract for branded credit card program with GE Capital
Samís Club, a division of Wal-Mart Stores (WMT), has finalized a multi-year agreement with GE Capital Retail Bank (GE) to extend their existing relationship to provide Samís Club-branded credit cards to club members in the U.S. and Puerto Rico. As part of the extension, GE Capitalís Retail Finance business will continue to manage and service the credit card programs for Samís Club Savings, Business and Plus members. Under the agreement, the Samís Club co-branded credit card programs will be converted to MasterCard (MA) later this year. Walmart has also extended their relationship with GE Capital Retail Bank and branded cards will transition to MasterCard later this year.
April 3, 2014
10:00 EDTDGOn The Fly: Analyst Initiation Summary
Subscribe for More Information
08:28 EDTWMTChecks indicate GameStop won't be threatened by Wal-Mart, says BB&T
Subscribe for More Information
06:35 EDTDGDollar General initiated with a Hold at Jefferies
Target $56.
1 | 2 | 3 | all recent news | >>

Sign up for a free trial to see the rest of the stories you've been missing.

I agree to the theflyonthewall.com disclaimer & terms of use