MATTHEWS, N.C. (AP) — More shoppers headed to Family Dollar Stores in the fourth quarter in search of bargains, giving a boost to the discounter's net income and revenue.
Once they got in the door, customers wound up spending more on average per transaction.
The Matthews, N.C.-based company also provided first-quarter and full-year earnings forecasts on Wednesday that are in range of analysts' expectations.
Family Dollar shares rose $1.35, or 2.1 percent, to $67.35 in premarket trading. That would still leave them 10 percent from their 52-week high of $74.73 on mid-June.
Family Dollar earned $80.9 million, or 69 cents per share, for the three months ended Aug. 25, up from $79.8 million, or 66 cents per share, a year ago. Removing a litigation charge, earnings were 75 cents per share.
This met the expectations of analysts polled by FactSet.
Revenue rose 11 percent to $2.36 billion from $2.13 billion, matching Wall Street's forecast.
For the year, Family Dollar Stores Inc. reported net income of $422.2 million, or $3.58 per share, up from $388.4 million, or $3.12 per share, a year earlier. Annual revenue increased 9 percent to $9.33 billion from $8.55 billion.
Family Dollar anticipates first-quarter earnings of 69 cents to 78 cents per share. The company foresees revenue at stores open at least a year up 4 percent to 6 percent. Analysts expect earnings of 77 cents per share.
For fiscal 2013, the chain predicts earnings in a range of $4.10 to $4.40 per share. Wall Street predicts $4.22 per share.
Family Dollar says it expects a mid-single-digit increase in revenue at stores open at least a year over the next three to five years. It also expects a double-digit increase in earnings per share over that period.
Family Dollar has more than 7,400 stores in 45 states.