UPDATE: Fred's Posts Drop In Q4 Earnings, Issues Weak Forecast

Fred's FRED reported a 40% drop in its fiscal fourth-quarter earnings. For the current quarter, Fred's expects earnings of $0.23 to $0.27 per share, versus analysts' estimates of $0.33 per share. Fred's projects fiscal-year earnings of $0.74 to $0.80 per share, versus estimates of $0.89 per share. Fred's posted its quarterly profit of $4 million, or $0.11 per share, versus a year-ago profit of $6.6 million, or $0.18 per share. The company had expected earnings of $0.13 to $0.16 per share. Its sales slipped 7.2% to $495.1 million. Fred's shares dropped 5.22% to $18.14 at 10:30 a.m. ET.