Family Dollar Boosts Guidance

Family Dollar Stores Inc. (FDO - Analyst Report) shares rose the most in nearly 6 months on Thursday after the discount retailer boosted its second-quarter earnings forecast as same-store sales jumped 6.4% during the period on strong demand for consumable goods.

In the three-month period ended Feb. 28, Family Dollar's total sales rose 8.7% to $1.99 billion as cash-strapped shoppers looked for bargains amid the economic downturn. The Charlotte, North Carolina-based company now sees earnings of 59 cents and 61 cents per share, up from a prior view of 48 cents and 52 cents. The consensus estimate for the second quarter is pegged at 50 cents per share.

Shares of the company were up more than 10% at $30.03 in midday trade on the NASDAQ after touching an intra-day high of $30.50 earlier in the day. Family Dollar is scheduled to report quarterly results on April 8.

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