These 3 Companies Announced Interesting Earnings This Week
Dollar General Corporation (NYSE:DG): The discount retailer, which “operates convenient-sized stores to deliver everyday low prices on products that families use every day,” released its second quarter earnings yesterday, reporting strong sales growth of 5.4%. Shares slumped some 9% in early today following the earnings release that fell short of mean analyst estimates, coupled with bad news on all fronts in the market today. Net income for the company rose to $157 million (45 cents/share) vs. $136 million (39 cents per share) in the year earlier quarter, while revenues rose from $3.11 to $3.45 billion.
Rick Dreiling, Chairman and CEO of Dollar General commented on todays earnings, “Dollar General is off to a great start in 2011. Our first quarter sales exceeded our expectations with strong same-store sales growth of 5.4 percent. As I look back on the first quarter, we maintained our focus on serving our customers and worked to hold the line where we reasonably could when it came to raising prices in an environment of rising commodity and fuel costs. Our customers are depending on Dollar General more than ever for consistent value and convenience.” Keep an eye on competitors Family Dollar Stores, Inc. (NYSE:FDO), 99 Cents Only Stores (NYSE:NDN), and Dollar Tree, Inc. (NASDAQ:DLTR).
Jos. A. Bank (NASDAQ:JOSB): The designer, retailer, and direct distributor of men’s clothing known for its homey television advertising released its first quarter earnings today, which also fell short of analyst projections. Shares were slammed in trading today with “Bank” shares falling almost 14% by closing time. Although, the quality retailer’s earnings did offer some redeeming financial statistics. Last quarter marked the fifth consecutive quarter of gross margins expanding as the company’s gross margin expanded 1.2 percentage points to 64.8% from the year earlier quarter. Over that span, margins have grown on average 1.5 percentage points per quarter on a year-over-year basis. The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 15.5% and in the third quarter of the last fiscal year, the figure rose 7.1%.
According to Jos. A. Bank President and CEO Neal Black, “We are pleased with our first quarter of 2011, particularly the gross profit margin, which grew by 120 basis points and resulted in a gross profit dollar increase of 10.6%. We faced very strong results from the first quarter of 2010 and had good sales gains in the first quarter of fiscal year 2011 in the suits and dress shirts categories, while our sales declined in certain seasonal products such as sportswear.” Keep an eye on competitors The Men’s Wearhouse, Inc. (NYSE:MW), and Casual Male Retail Group, Inc. (NASDAQ:CMRG).
Lion’s Gate Entertainment Corp (NYSE:LGF) : Last but not least, the much beloved producer of films, television programming, home entertainment, family entertainment, video-on-demand and digitally delivered content was able to snap its earnings losing streak and beat mean analyst estimates in terms of earnings per share. Lion’s Gate swung to a profit of $46.1 million (33 cents/diluted share) in the quarter. Lions Gate Entertainment Corp. had a net loss of $22.3 million or a loss 19 cents per share in the year earlier quarter. LGF’s profit in the latest quarter follows losses in the three previous quarters. The company reported a net loss of $6 million in the third quarter, a loss of $29.7 million in the second quarter and a loss of $64.1 million in the first.
Lionsgate Co-Chairman and Chief Executive Officer Jon Feltheimer had this to say on earnings, ““Strong performances from our television business and our filmed entertainment library contributed to financial results that exceeded our preliminary estimates.” Shares were up over 4% in trading today. Watch competitors DreamWorks Animation SKG, Inc. (NASDAQ:DWA), The Walt Disney Company (NYSE:DIS), News Corp (NASDAQ:NWSA).