Citigroup Maintains Buy On Family Dollar After 2Q Earnings

Citigroup has published a research report on Family Dollar Stores FDO after the company reported diluted valuation during its 2Q. In the report, Citigroup writes, "FDO's F2Q11 EPS of $0.98 per diluted share were in line with our estimate of $0.98 and consensus of $0.98, within the most recent guidance of $0.97-$0.98 (provided 3/14/11), and vs. $0.81 last year. Results reflected SSS of 5.1% (vs. 5-6% guidance) and better-than-expected GM expansion and expense deleverage vs. our estimates. Mgmt. provided F3Q11 EPS guidance with the midpoint in-line with consensus and narrowed F2011 EPS guidance to the high-end of previous guidance by 5 cents. This along with better gross margin should be reflected positively in the shares today." Citigroup maintains its Buy rating on Family Dollar Stores, which closed yesterday at $52.40.