Dollar General Corporation (NYSE:DG) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 5.7%.
Dollar General Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 12.7% to $0.71 in the quarter versus EPS of $0.63 in the year-earlier quarter.
Revenue: Rose 8.53% to $4.23 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Dollar General Corporation reported adjusted EPS income of $0.71 per share. By that measure, the company met the mean analyst estimate of $0.71. It missed the average revenue estimate of $4.24 billion.
Quoting Management: “For the quarter, we achieved same-store sales growth of 2.6 percent reflecting strong growth in our consumables categories offset by softer sales in seasonal and weather-sensitive categories,” said Rick Dreiling, Dollar General’s chairman and chief executive officer. “Solid SG&A leverage helped to offset gross margin declines in the first quarter. We believe the continued strength in consumables is a sign of the underlying health of our business.”
Key Stats (on next page)…
Revenue increased 0.63% from $4.21 billion in the previous quarter. EPS decreased 26.8% from $0.97 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.76 and has not changed. For the current year, the average estimate is a profit of $3.28, which is the same with that ninety days ago.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)