Fred's Inc. Reports Q4 Adj. EPS Of $0.02 - Quick Facts

(RTTNews) - Fred's, Inc. (FRED) reported a fourth quarter net loss of $8.2 million or $0.22 per share, compared to net income of $4.0 million or $0.11 per share in the year-earlier period. Adjusted net income for the fourth quarter of 2014 was $0.7 million or $0.02 per share.

The company noted that its adjusted net income excludes non-operational charges in the fourth quarter of 2014 that totaled $15.0 million pre-tax or $0.24 per share.

On average, seven analysts polled by Thomson Reuters expected the company to report profit per share of $0.01 for the quarter. Analysts' estimates typically exclude special items.

Total sales increased to $504.4 million from $495.0 million, last year. Comparable store sales for the quarter were flat compared with an increase of 0.1% in the fourth quarter last year. Analysts expected revenue of $507.46 million for the quarter.

The company expects total sales for the first quarter to increase in the range of flat to up 2%. Comparable store sales also are expected to be flat to 2%. Earnings per share for the first quarter are forecasted to be in the range of flat to up $0.03, compared with $0.17 last year. Analysts expect the company to report first-quarter earnings per share of $0.26.

The company said the lower earnings guidance is due to the decline in general merchandise initial markup at the beginning of 2015, the West Coast port strike, which affects both the gross margin on receipts and sales in the quarter, and unusual favorable expense in the prior year not expected to recur.

The company expects total sales for the year to increase 10% to 15% which includes the impact of the acquisition of Reeves-Sain Drug Store, Inc., which was announced on March 25, 2015. Comparable store sales for the year are expected to increase 4% to 6%. Total earnings per share for 2015 are expected to be in the range of $0.50 to $0.58.