UPDATE: Family Dollar Posts Lower Q1 Profit, Issues Weak Guidance

Family Dollar Stores FDO reported a drop in its first quarter profit. Family Dollar's quarterly profit declined to $78.0 million, or $0.68 per share, versus a year-ago profit of $80.3 million, or $0.69 per share. Its revenue climbed 3.2% to $2.50 billion from $2.42 billion. However, analysts were estimating earnings of $0.69 per share on revenue of $2.51 billion. Family Dollar expects Q2 earnings range of $0.85 to $0.95 per share, versus analysts' estimates of $1.21 per share. It also lowered its FY14 earnings outlook to $3.25 to $3.55 per share versus its earlier forecast of $3.80 to $4.15 per share. Family Dollar shares closed at $66.34 yesterday.