Dollar General Corp Earnings Cheat Sheet: Powering Ahead

Dollar General Corporation (NYSE:DG) reported its results for the third quarter. Dollar General is a discount retailer in the United States and operates convenient-sized stores that deliver everyday low prices on products that families use every day.

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Dollar General Earnings Cheat Sheet for the Third Quarter

Results: Net income for Dollar General Corporation rose to $171 million (50 cents per share) vs. $128.1 million (37 cents per share) in the same quarter a year earlier. This marks a rise of 34% from the year earlier quarter.

Revenue: Rose 11.5% to $3.6 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: DG beat the mean analyst estimate of 48 cents per share. Analysts were expecting revenue of $3.57 billion.

Quoting Management: “Dollar General delivered another great quarter, and we expect to continue to build upon our strong track record of delivering excellent results for our shareholders,” said Rick Dreiling, chairman and chief executive officer. “Our same-store sales increased 6.3 percent in the third quarter, representing our third consecutive quarter of accelerating same-store sales growth and demonstrating our ability to balance the challenges of pricing and rising input costs.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 3.4% and in the first quarter, the figure rose 15.4%.

Gross margin shrank 0.2 percentage point to 31.1%. The contraction appeared to be driven by increased costs, which rose 12.1% from the year earlier quarter while revenue rose 11.7%.

Revenue has risen the past four quarters. Revenue increased 11.2% to $3.58 billion in the second quarter. The figure rose 10.9% in the first quarter from the year earlier and climbed 9.4% in the fourth quarter of the last fiscal year from the year-ago quarter.

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 52 cents versus a mean estimate of net income of 48 cents per share.

Looking Forward: Next quarter’s results are expected to be more favorable for the company. Over the past sixty days, the average estimate for the fourth quarter has reached 81 cents per share, up from 80 cents. For the fiscal year, the average estimate has moved down from $2.32 a share to $2.29 over the last ninety days.

Competitors to Watch: Family Dollar Stores, Inc. (NYSE:FDO), 99 Cents Only Stores (NYSE:NDN), Dollar Tree, Inc. (NASDAQ:DLTR), Wal-Mart Stores, Inc. (NYSE:WMT), Target Corporation (NYSE:TGT), Costco Wholesale Corp. (NASDAQ:COST), Big Lots, Inc. (NYSE:BIG), Fred’s, Inc. (NASDAQ:FRED), Gordmans Stores, Inc. (NASDAQ:GMAN), and Amazing Savings, Inc (ODDJ).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)