Net income for the quarter clocked in at $79.9 million, down slightly from $81.1 million posted in the same quarter a year ago.
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Chesapeake, Va.-based Dollar Tree has said it intends to close its $8.5 billion acquisition of Family Dollar early this month after receiving final regulatory approval.
Specifically, the list released by the FTC calls for the sale of Family Dollar stores in East Liberty, McKeesport, one along East Warrington Avenue in the Allentown area, and another along Brighton Road on the North Side.
Excluding items, adjusted earnings for the quarter were $0.74 per share compared with $0.85 per share a year ago. The stock had a trading volume of 1,104,184 shares.
Family Dollar’s investors approved the transaction in January after a six-month saga that featured a higher offer from Dollar General Corp.
Total net sales during the quarter increased 2.6% to $2.73 billion from $2.66 billion in the third quarter of fiscal 2014. Over the last 52 weeks, Family Dollar shares are up by more than 20%. The higher price target estimate for the stock has been calculated at $81 while the lower price target estimate is at $52. Research Analysts at Zacks has the shares a rating of 3, which implies that the firms recommendation is Neutral on the company. The company had targeted a May close date.
In a conference call with investors in February, Dollar Tree CEO Bob Sasser said: “While their [Family Dollar’s] reported results have not been stellar, we acknowledge that they have been operating through unique circumstances with great uncertainty regarding the future of the Family Dollar business”. (NYSE:FDO) is a hold, according to the latest average broker rating of 3.43.
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Dollar Tree won a bidding war with another discount chain, Tennessee-based Dollar General, that also was interested in Family Dollar. The Companys merchandise assortment includes Consumables, Home Products, Apparel and Accessories, and Seasonal and Electronics. Post opening the session at $80.2, the shares hit an intraday low of $78.28 and an intraday high of $80.79 and the price vacillated in this range throughout the day.
