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Dollar Tree (NASDAQ: DLTR) saw a nice increase in its bottom-line profit. The retailer, which reported earnings for the first quarter earlier this week, said it made 66 cents per share, good for an increase of more than 37%. Revenues increased 14%, and same-store sales went up a whopping 9%. So many retailers would absolutely kill to have that same-store number.

It's no secret why Dollar Tree is thriving. Bad economy plus items-that-sell-for-a-dollar-each equals retail success. Brand equity is important. So is convenience. But a cheap price point oftentimes trumps all.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Bed Bath & Beyond Inc. (NASDAQ: BBBY) easily topped Q4 earnings estimates but same-store sales fell.
• Brinker International Inc. (NYSE: EAT) forecast Q3 earnings that are well above analysts' estimates.
• Constellation Brands Inc. (NYSE: STZ) said it narrowed its loss in Q4 despite restructuring costs.
• Excel Maritime Carriers Ltd. (NYSE: EXM) is expected to fall short of Q4 earnings expectations.
• Family Dollar Stores Inc. (NYSE: FDO) reported strong Q2 results and and raised its outlook for Q3.

Shares of thrift retailer Family Dollar (NYSE: FDO) have been trading strongly higher this morning after the company announced strong second quarter earnings this morning.

We mentioned in our earnings preview yesterday that analysts were expecting to see earnings of $0.60 per share, and that is exactly what Family Dollar delivered.

U.S. stocks may be poised to drop for a third day following yesterday's disappointing results from Alcoa Inc. (AA), the first major Dow component to report this earnings season.

According to Bloomberg News, futures on the S&P 500 expiring in June decreased 0.9 percent to 806.60 at 10:50 a.m. in London, while Dow Jones Industrial Average futures slid 1% to 7,683 and Nasdaq-100 Index futures fell 0.6% to 1,273.75. Markets in Europe and Asia were also down.

Family Dollar (NYSE: FDO) has had quite a run. Over the year shares in the super discount store chain have risen by roughly 65%, rising from just under $20 on April 7, 2008 to a closing price of just over $33 on April 6, 2008. The obvious reason is the awful economy.

Earnings later this morning are hotly anticipated. Our Piqqem Sentiment for Family Dollar is positive but beginning to trend down. Will cheap keep beating the Street?

One company that has been making the best of the current economy is retailer Family Dollar (NYSE: FDO). The company has been strong over the past couple of years, and is looking to continue that trend by posting strong second quarter earnings in the morning.

Over the past six quarters, the company has been able to match or beat estimates each time. Going into tomorrow's release, Wall Street is expecting the company show earnings of $0.60 per share.

A new earnings reporting season kicks off this coming week with the quarterly report from Alcoa, the first Dow Jones industrial to report. But investors looking for early signs about the first quarter will be disappointed in what they see from the aluminum producer, assuming that analysts surveyed by Thomson Reuters are neither too optimistic or too pessimistic about those results.

Dick's Sporting Goods (NYSE: DKS) competed on Tuesday in a contest that no company really wants to play: the Expectations Game. Things turned out pretty well for the famous seller of sports stuff (being that I'm no athlete, I can't say I've purchased anything from the place). For the fourth quarter, Dick's posted adjusted income of 55 cents per diluted share. Analysts surveyed by Reuters believed that the chain might do 53 cents per share.

Very cool. In fact, Dick's stock closed yesterday at $12.84. The shares gained over 17% on excellent volume. So, one might expect that the earnings were great and that the stock is a buy. Not so fast.

It is tough to be a retailer in this climate. It's especially tough to be a retailer like J. Crew Group, Inc. (NYSE: JCG). After all, if you're a Wal-Mart Stores, Inc. (NYSE: WMT) or a Family Dollar Stores (NYSE: FDO), at least you can entice consumers with your low prices, and at least you stock things that people need. Not so with J. Crew. It's a fashion retailer that you don't have to visit during the recession. Apparently, many people indeed haven't been visiting lately. That's why shareholders will most likely be nervous when fourth-quarter numbers are issued after the bell on Tuesday, March 10.

According to this source, J. Crew should report an earnings loss of $0.27 per share. How ugly! This compares to a profit of $0.41 per share in the year-ago period. I expect to hear the same stuff that we've been hearing from retailers such as Urban Outfitters (NASDAQ: URBN) and Kohl's (NYSE: KSS): things are tough, the rest of the year is going to be a huge challenge, we're doing everything we can to navigate the business through the treacherous times, etc. Such rhetoric probably won't be comforting to shareholders, especially considering that J. Crew's stock isn't too far from a 52-week low.

Analyst upgrades:

• Merriman upgraded Taser (NASDAQ: TASR) to Buy from Neutral as it believes current valuation levels do not reflect the company's market opportunities and that the law enforcement funding in President Obama's stimulus plan will boost sales in Q4 and FY10.
  
• Goldman upgraded Macy's (NYSE: M) to Buy from Neutral and added shares to its Conviction Buy List based on reduced balance sheet concerns and improved risk/reward. The firm also raised their target to $8.25 from $8.
  
• JP Morgan upgraded Family Dollar (NYSE: FDO) to Neutral from Underweight and raised its target to $29 from $19 following the better-than-expected Q2 report. The analyst continues to prefer Dollar Tree (NASDAQ: DLTR) and Wal-Mart (NYSE: WMT).
• Goldman removed Universal Am (NYSE: UAM) from the Conviction Sell List.
  
• McDermott (NYSE: MDR) was upgraded to Buy from Hold at Jefferies.
  
• Canadian Natural (NYSE: CNQ) was upgraded to Sector Outperformer from Sector Performer at CIBC.

Here are some highlights from this past week's earnings coverage from BloggingStocks:

• Acuity Brands Inc. (NYSE: AYI) reported lower Q1 earnings that still beat analysts' expectations.
• Bed Bath & Beyond Inc. (NASDAQ: BBBY) reported unimpressive Q3 results but shares rose anyway.
• Chevron Corp. (NYSE: CVX) warned of lower Q4 earnings due to lower oil prices and narrow margins.
• Constellation Brands Inc. (NYSE: STZ) Q3 earnings tumbled on on restructuring costs and weaker sales.
• Family Dollar Stores Inc. (NYSE: FDO) topped Q1 earnings expectations as consumers seek bargains.
• Intel Corp. (NASDAQ: INTC) lowered its Q4 revenue guidance once more due to lower demand.
• LDK Solar Co. (NYSE: LDK) cut its Q4 revenue outlook as clients asked for delayed shipments.
• Manitowoc Co. (NYSE: MTW) said profit will likely come in at the low end of its previous guidance range.
• Monsanto Co. (NYSE: MON) reported strong Q1 numbers and raised its full-year guidance.
• Neogen Corp. (NASDAQ: NEOG) posted its 63rd-consecutive profitable quarter, helped by an acquisition.
• Rocky Mountain Chocolate Factory (NASDAQ: RMCF) posted dismal Q3 numbers on economic downturn.
• Sears Holdings Corp. (NASDAQ: SHLD) higher-than-expected December sales prompted raised guidance.
• Supervalu Inc. (NYSE: SVU) reported a Q3 loss because of hefty one-time charges, but topped estimates.
• Walmart Stores Inc. (NYSE: WMT) cut its Q4 forecast after lower-than-expected December sales.
• Williams-Sonoma Inc. (NYSE: WSM) forecast lower-than-expected Q4 earnings on weak December sales.

For more earnings highlights, see Time Warner, Satyam, Google, KB Home, Mosaic and others

Upcoming earnings releases include Alcoa Inc. (NYSE: AA), Infosys (NASDAQ: INFY), Linear Technologies (NASDAQ: LLTC) , Xilinx (NASDAQ: XLNX), Genentech (NYSE: DNA), Intel (NASDAQ: INTC), Marshall & Ilsley (NYSE: MI), Sealy (NYSE: ZZ), Johnson Controls (NYSE: JCI).

Visit AOL Money & Finance for more earnings coverage.

This week, the short-term rally of the last few days of the holiday season was over. While many hope the economy would start rebounding toward the end of the year, more voices are now heard saying the recession will be longer and deeper than estimates. The only thing that could help is a proper stimulus plan.

Indeed, President-elect Obama's transition team and his chosen staff have already been working on a plan, trying to push legislators to act swiftly. As investors received news of one dismal economic report after another -- from retail sales, auto sales, housing, manufacturing and employment -- the corporate side also continued to show considerable weakness with earnings warnings coming nearly daily.

The real question is whether the stimulus plan and the Federal Reserve actions, alongside similar moves taken around the world, could give the boost the economy so desperately needs. It seems several BloggingStocks contributors believe this might be the case as they looked at long-term investment ideas. Here are some of their picks from the past week:

Buffalo Wild Wings (NASDAQ: BWLD) actually saw an increase in value of 62.3% during the quarter. It has a strong capital position and is nearly debt free. It has actually seen a third-quarter same-store sales growth of 8.3%. There has been some pressure on the stock following an earnings miss due to growth, creating an opportunity for astute investors, says Jamie Dlugosch.

It comes as no surprise that the top performer among the stocks comprising the S&P 500 Index is a retailer focused on delivering quality products and services at a discount price.

Family Dollar Stores (NYSE: FDO) increased nearly 30% in 2008, compared with a decrease of 40% in the S&P 500.

Defying the expectations of gloomy analysts who are paralyzed by their inability to value companies during the last 12 months, and by short sellers who perceived a price drop following the high level performance in 2008, the stock is continuing its climb as we enter the 2009 trading year.

Family Dollar reported first quarter earnings Wednesday, which exceeded analysts' expectations and company projections.

Earnings for the period were up by 14%, with revenue increasing by 4.2% and same-store sales up a healthy 2.1%. Market reaction to the report is stunning, with FDO up more than 14% at the close.

Family Dollar CEO Howard Levine, son of founder and Chairman Emeritus Leon Levine, issued a forecast of continued growth for the next quarter and for all of 2009.

The company is now projecting earnings of $1.63 to $1.81 per share for fiscal year 2009. Earlier forecasts were in the range of $1.58 to $1.78. Projections of same-store sales growth for the year were also increased from a range of 1%-3% to 2%-4%.

FDO combines conservative leadership with a consumer-friendly neighborhood store environment, and a product mix appealing to cost-conscious consumers to deliver value and a positive shopping experience. With minimal exposure to price-volatile electronic and apparel inventory, company performance is not likely to be adversely affected by a prolonged economic downturn.

FDO has more than 6,000 locations in 44 contiguous states. The company has effectively managed its rapid growth during the last five years, having opened more than half of its stores during this period.

Family Dollar Stores (NYSE: FDO), a retailer that competes with Dollar Tree (NASDAQ: DLTR) and Wal-Mart Stores, Inc. (NYSE: WMT), reported earnings for the first quarter on Wednesday, and the market couldn't have been happier. As I was writing this, the stock was trading up over 13% on very nice volume. But, is 13 an unlucky number in this case? Would those buying in now be buying in too high?

Well, I can understand the euphoria surrounding the stock rise. To begin with, Q1 earnings beat estimates by two pennies. They came in at $0.42 per share, and that represented a double-digit growth rate for the bottom line of over 13% (there's that unlucky number again!). Top-line sales of approximately $1.8 billion essentially met expectations. When you think of Family Dollar's business and marketing model, you can understand why it's doing well. We're in one of the worst recessions ever, and people are looking for cheap prices on everything. I'm not the biggest fan of dollar-store businesses (for instance, I don't think I'd buy foodstuffs for a buck), but I do shop at them from time to time and can appreciate the allure. I think you can also understand why the stock is performing as well as it has been today: on top of the earnings beat, Family Dollar was the greatest S&P stock story of 2008 according to this source.

Here's the big question on everyone's mind: Is Family Dollar still a buy? If you're currently trading strength, I think you could buy this one after a pullback and then ride the stock to its 52-week high of over $32 per share. I see no reason why it won't make that level, especially if economic conditions continue to worsen (did I say if?). However, I certainly wouldn't be a buyer of today's rally. I think there's momentum behind this name, but I'll say this -- there are probably better bargains out there for any profit you might make from a trade on Family Dollar. So if you do make some bucks on it (pun intended), I'd probably take the profits and allocate them elsewhere. I'm just not sure that Family Dollar will be the best performer in '09 as well.

Disclosure: I don't own any company mentioned, but positions can change without notice.

After the turn of the calendar page, quarterly reporting resumes this week. Analysts surveyed by Thomson Reuters are expecting to see strong earnings growth from fertilizer producer Mosaic Co. (NYSE: MOS), biotech giant Monsanto Co. (NYSE: MON), and Neogen Corp. (NASDAQ: NEOG), which produces food safety and animal health products. Mosaic's estimated earnings per share of $1.43 for the fiscal second quarter would be 41.9% higher than a year ago, and its revenue estimate of $3.0 billion is 36.7% higher. Monsanto's $0.59 per share projection for the fiscal first quarter is 22.0% higher and sales of $2.4 billion are up 14.9%. And Neogen's second-quarter $0.25 per share would be 12.0% higher, while its sales of $32.3 million are up 18.6%. All three have tended to beat expectations in recent quarters, and all three have buy recommendations from a consensus of analysts. Mosaic and Monsanto have recently announced dividends, and their share prices have fallen 62.3% and 39.0%, respectively, from a year ago. The share price of Neogen, which recently announced share buybacks, is only 0.8% lower.

Other companies expected to post modest earnings gains when they report this week include education company Apollo Group Inc. (NASDAQ: APOL), WD-40 Co. (NASDAQ: WDFC), and wine and spirits maker Constellation Brands Inc. (NYSE: STZ).