Dollar General Earnings Cheat Sheet: Powering Ahead

Dollar General Corporation (NYSE:DG) reported net income above Wall Street’s expectations for the second quarter. Dollar General Corporation is a discount retailer in the United States and operates convenient-sized stores to deliver everyday low prices on products that families use every day.

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Dollar General Earnings Cheat Sheet for the Second Quarter

Results: Net income for Dollar General Corporation rose to $146 million (42 cents per share) vs. $141.2 million (41 cents per share) in the same quarter a year earlier. This marks a rise of 3.4% from the year earlier quarter.

Revenue: Rose 11.2% to $3.58 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: DG reported adjusted net income of 52 cents per share. By that measure, the company beat the mean estimate of 48 cents per share. Analysts were expecting revenue of $3.54 billion.

Quoting Management: “Dollar General delivered strong results for the second quarter,” said Rick Dreiling, chairman and chief executive officer. “Our same-store sales increase of 5.9 percent in the quarter represents an acceleration from the first quarter and demonstrates our ability to balance the challenges of pricing and rising input costs. Our customers are depending on us even more for the convenience and value we offer.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 15.4% and in the fourth quarter of the last fiscal year, the figure rose more than twofold.

Gross margin shrank 0.1 percentage point to 32.1%. The contraction appeared to be driven by increased costs, which rose 11.4% from the year earlier quarter while revenue rose 11.2%.

Revenue has risen the past four quarters. Revenue increased 10.9% to $3.45 billion in the first quarter. The figure rose 9.4% in the fourth quarter of the last fiscal year from the year earlier and climbed 10.1% in the third quarter of the last fiscal year from the year-ago quarter.

The company topped expectations last quarter after falling short of forecasts in the first quarter with net income of 48 cents versus a mean estimate of net income of 50 cents per share.

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), Walgreens (NYSE:WAG), CVS (NYSE:CVS) and Gordmans Stores, Inc. (NASDAQ:GMAN).

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(Source: Xignite Financials)