NEW YORK (TheStreet) -- Shares of Family Dollar Stores (FDO) are down -2.71% to $62.50 in pre-market trade after the troubled discount retailer saw its third quarter profit drop by a third as the company resorted to discounts to clear inventory and competition intensified, CNBC reports.
The company, which is under pressure from activist investor Carl Icahn (IEP) to put itself up for sale, said net income declined to $81.1 million, or 71 cents per share, from $120.9 million, or $1.05 per share, a year earlier.
Net sales were up 3.3% to $2.66 billion, from $2.57 billion a year earlier.
Same-store sales slid 1.8% percent, the ccmpany's third consecutive quarterly decline.
TheStreet Ratings team rates FAMILY DOLLAR STORES as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate FAMILY DOLLAR STORES (FDO) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."