Back to top

Image: Bigstock

Dollar General (DG) Stock Slip as Q1 Earnings Miss Estimates

Read MoreHide Full Article

Dollar General Corporation (DG - Free Report) , one of the largest discount retailers, came out with first-quarter fiscal 2018 results, wherein earnings of $1.36 missed the Zacks Consensus Estimate of $1.40 but improved 33.3% from the prior-year quarter.

Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2018 has increased by a penny in the last 30 days. Moreover, in the trailing four quarters, excluding the quarter under review, the company outperformed the Zacks Consensus Estimate by an average of 2.3%.

Revenues: Dollar General generated net sales of $6,114.5 million that increased 9% year over year. Top-line however missed the Zacks Consensus Estimate of $6,189 million. Further, same store sales improved 2.1%.

Key Events: The Board declared a quarterly dividend of 29 cents per share that is payable by Jul 24, 2018 to shareholders of record as on Jul 10, 2018. Further, it repurchased 1.6 million shares for $150 million in the quarter.

Outlook: Management reiterated its guidance for fiscal 2018. It continues to anticipate net sales for fiscal 2018 to increase by 9%, year-on-year. Same store sales are expected to soar in mid-two percentage in fiscal 2018.  Further, GAAP earnings for the fiscal are expected in the range of $5.95 -6.15.

Zacks Rank: Currently, Dollar General has a Zacks Rank #2 (Buy), which is subject to change following the earnings announcement. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stock Movement: Shares of Dollar General fell 5.7% during pre-market trading hours following the dismal first-quarter fiscal 2018 results.

Check back later for our full write up on Dollar General’s earnings report!

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Dollar General Corporation (DG) - free report >>

Published in