Dollar General Earnings: Another Solid Sales Quarter

Dollar General Corporation (NYSE:DG) reported net income above Wall Street’s expectations for the first 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 Corporation Earnings Cheat Sheet

Results: Net income for the retail-discount rose to $213 million (63 cents per share) vs. $157 million (45 cents per share) in the same quarter a year earlier. This marks a rise of 35.7% from the year-earlier quarter.

Revenue: Rose 13% to $3.9 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dollar General Corporation beat the mean analyst estimate of 59 cents per share. It beat the average revenue estimate of $3.82 billion.

Quoting Management: “Dollar General is starting off 2012 with strong performance in the first quarter due to excellent same-store sales growth of 6.7 percent, representing the fifth consecutive quarter of accelerating improvement,” said Rick Dreiling, chairman and chief executive officer. “We are pleased to raise our full year financial outlook to now reflect adjusted EPS of $2.68 to $2.78. Our first quarter was strong, and we are pleased with our May sales performance.”

“I believe we are positioned well to invest in the future of our business as we continue to redefine small-box retailing and reinforce Dollar General’s role as America’s general store,” said Dreiling.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 13.3%, with the biggest boost coming in the fourth quarter of the last fiscal year when revenue rose 20.1% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 31.4% and in the third quarter of the last fiscal year, the figure rose 33.6%.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 3 cents in the fourth quarter of the last fiscal year, by 2 cents in the third quarter of the last fiscal year, and by 4 cents in the second quarter of the last fiscal year.

Looking Forward: The average estimate for the second quarter remains unchanged at 63 cents a share. Over the past three months, the average estimate for the fiscal year has climbed from $2.71 per to share to $2.75.

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

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