Dollar General Earnings: Revenue Grows Again by Double Digits

Dollar General Corporation (NYSE:DG) reported net income above Wall Street’s expectations for the second 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 Dollar General Corporation rose to $214.1 million (64 cents per share) vs. $146 million (42 cents per share) in the same quarter a year earlier. This marks a rise of 46.6% from the year-earlier quarter.

Revenue: Rose 10.4% to $3.95 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dollar General Corporation reported adjusted net income of 69 cents per share. By that measure, the company beat the mean estimate of 64 cents per share. It beat the average revenue estimate of $3.82 billion.

Quoting Management: “Dollar General had another strong quarter,” said Rick Dreiling, chairman and chief executive officer. “Our same-store sales increase of 5.1 percent demonstrates the ongoing execution of the initiatives around our key operating priorities and is evidence of our continued importance to our customers.”

Key Stats:

The company has seen 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 first quarter, net income rose 36% and in the fourth quarter of the last fiscal year, the figure rose 31.4%.

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

Looking Forward: Expectations for the third quarter have not changed from 59 cents. For the fiscal year, the average estimate has moved up from $2.75 a share to $2.80 over the last ninety days.

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

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