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Earnings Analysis: 
Dollar General’s Quarterly Net Profit down vs. Year-ago Period
Author: Ivaylo Dagnev
123jump.com
Last Update: 9:40 AM EST November 22 2005



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Dollar General, off-price retailer, posted Q3 earnings of 20 cents a share, down from a profit of 22 cents a share a year-ago, beating the analyst estimate of 19 cents a share.

 
Dollar General’s, (DG: chart), sales rose 9.5% and same-store sales increased 1.4% in Q3. The company attributed the decline in profits to lower sales of its seasonal home and basic clothing products, increased markdowns to reduce inventory, and the impact of its decision to increase the number of departments used for its retail inventory method gross profit calculation.

Fred''s Inc., (FRED: chart), general merchandise retailer, posted Q3 earnings of 16 cents a share, down from a profit of 19 cents a share a year-earlier. If not for the impact of an accounting standard change, the company would have gained 19 cents a share in Q3, well within the range of its previous outlook, beating on that basis analyst expectations by a penny. Sales rose about 8%.

Albertson''s Inc, (ABS: chart), supermarket operator, announced that Q3 net income dropped 30% to 21 cents a share, from 29 cents a share in the year-ago period as revenue slipped 0.2%. Earnings from continuing operations adjusted for the storms in both periods fell 22%. Adjusted for the storms, earnings from continuing operations amounted to 24 cents, down vs. 32 cents in the comparable period last year, missing on that basis the analysts’ forecasts of 27 cents a share.

Tech Data Corp., (TECD: chart), distributor of information technology products, reported that Q3 net income dropped to 40 cents a share, from $ 64 cents, a year ago, missing analyst expectations of 45 cents a share. Sales for Q3 advanced to $5.08 billion from $4.77 billion a year earlier.

H.J. Heinz Co, (HNZ: chart), sauces and packaged-food manufacturer, posted a Q2 of fiscal 2006 net income of 60 cents a share, up from 56 cents in the same period in fiscal 2005, beating analyst estimate of 54 cents a share. Outside special items, the company would have earned 62 cents a share from continuing operations. The company’s quarterly sales totaled nearly $2.34 billion from $2.2 billion. This 6.3% sales growth came primarily from acquisitions; volume increased 0.6%.

Brown Shoe Inc., (BWS: chart), shoe retailer, announced that Q3 net profit advanced to $1.04 a share, up from $1 a share in the year-ago period on sales growth. Adjusted for charges related to close some of its Naturalizer stores, its earnings of $1.21 a share topped analyst expectations of $1.04 a share.

Genesco Inc., (GCO: chart), specialty footwear and headwear retailer, posted Q3 earnings of 61 cents a share, up from a profit of 47 cents a share a year-ago, beating analysts’ forecasts of 58 cents a share. On a continuing operations basis, the company earned 62 cents a share in Q3. Sales advanced to $316.3 million from $288.4 million in the same period a year ago. The company attributed its improved performance to gains in same-store sales and gross margin expansion.

Dollar Tree Stores Inc., (DLTR: chart), retailer, posted Q3 earnings of 29 cents a share, a penny more than the same period last year’s result and beating analyst estimate of 27 cents a share. Sales advanced 10.1% but same store sales shed 1%.
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