J.P. Morgan Models FDO $0.01 Above Consensus

J.P. Morgan is modeling Family Dollar Stores, Inc.'s FDO EPS one penny above consensus. “On the quarter, we expect EPS of $0.62, a penny above both the high-end of company guidance of $0.56-$0.61 and the Street,” J.P. Morgan writes. “Our estimate implies earnings growth of 28.0%, representing the fourth consecutive quarter of 20%+ growth. Taking a closer look at our model – our estimate is predicated on SSS of +7.0% (see below), 45 net new stores (to 6,830), 9 bps of GPM expansion to 36.2%, and 34 bps of SG&A leverage (to 29.8%) – netting to a 6.4% EBIT margin.” Also, J.P. Morgan said that it is modeling an average weighted share count of 128.1 million reflecting the repurchase of 3.5 million shares as a result of the ASR announced in October. Family Dollar Stores closed Monday at $50.28.