Bad Day For Nelson Peltz, Family Dollar (FDO)

Back in July, Nelson Peltz's Trian Fund Management took a 6% stake in Family Dollar FDO. At the time, the transaction was valued at $168,698,208. As of yesterday, Trian was up almost 25% on their investment, but a good chunk of those profits have evaporated today. Family Dollar has fallen 8.62% after reporting disappointing earnings this morning. After today's sell off, the fund's FDO position is only up around 13.53% - still not bad. Family Dollar reported net income of $74.32 million or $0.58 per share, compared to $67.62 million or $0.49 per share in the year ago period. This compared to analysts' consensus EPS estimates of $0.61. Looking ahead to the second quarter, FDO anticipates earnings per share in a range between $0.92 and $0.97, which is below analysts' consensus estimates of $1.00. For fiscal 2011, the company anticipates earnings between $3.08 and $3.23. Analysts are currently projecting that FDO will earn $3.18 for the year.