Fred's Q4 Profit Misses Estimates - Quick Facts

(RTTNews) - Fred's, Inc. (FRED) reported fourth-quarter net income of $3.97 million, compared to $6.56 million, previous year. Earnings per share was $0.11, compared to $0.18. The company noted that its fourth-quarter included 13-weeks in the period ended February 1, 2014, versus a 14-week fourth quarter period last year.

On average, ten analysts polled by Thomson Reuters expected the company to report profit per share of $0.15 for the quarter. Analysts' estimates typically exclude special items.

Net sales were $495.03 million, compared to $533.38 million. Analysts expected revenue of $507.09 million for the quarter.

To make the fourth quarter results comparable with those of the prior-year period, the company eliminated the first week of the fourth quarter to make similar 13-week periods. On this adjusted basis, total sales increased 0.5% for the fourth quarter. The fourth quarter comparable store sales, on an adjusted basis, increased 0.1%.

The company expects its first-quarter total sales to be flat to up 2%. Comparable store sales for the first quarter are expected to be flat to down 2% reflecting poor weather conditions and weather-related store closings that have affected Lawn & Garden and other seasonal merchandise. Earnings per share are forecasted to be in the range of $0.23 to $0.27. Analysts expect the company to report first-quarter earnings per share of $0.33.

The company expects total earnings per share for 2014 to be in the range of $0.74 to $0.80. Analysts expect the company to report fiscal 2014 earnings per share of $0.89.