Fred's Q2 Profit Down - Quick Facts

(RTTNews) - Fred's Inc. (FRED) reported that its second quarter of 2013 net income declined to $3.3 million or $0.09 per share from $6.1 million or $0.17 per share in the year-earlier period. Analysts polled by Thomson Reuters expected the company to report earnings of $0.09 per share for the quarter. Analysts' estimates typically exclude special items.

The prior-year quarter included a benefit of approximately $4.0 million or $0.11 per share for favorable tax credits related to a state income tax settlement as well as adjustments for other tax related assumptions and estimates.

Excluding the favorable tax credits, the company's net income for the second quarter of 2013 increased 63% from the second quarter of 2012 while earnings per diluted share increased 50%.

Total sales for the second quarter of fiscal 2013 increased 2% to $482.2 million from $470.8 million for the same period last year. Eight analysts had consensus revenue estimate of $482.45 million for the quarter. Comparable store sales for the quarter increased 2.2% compared with a decline of 1.0% in the second quarter last year.

For the third quarter of 2013, the company expects total sales to increase in the range of 1% to 3%. Comparable store sales are expected to be flat to up 2% versus a decrease of 2.5% in the third quarter last year. Third quarter 2013 earnings per share are forecasted to be in the range of $0.19 to $0.23 compared with earnings per diluted share of $0.18 in the same period last year. Analysts expect the company to report earnings of $0.23 per share and revenues of $460.97 million for the third-quarter.

The company now expects total earnings per share for 2013 to be in the range of $0.81 to $0.86. While announcing the first-quarter result, the company had expected total earnings per share for fiscal 2013 to be in the range of $0.77 to $0.88. Street currently is looking for full-year 2013 earnings of $0.85 per share.