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Tuesday, December 4, 2018

Dollar General (DG) reported earnings on Tue 4 Dec 18 (b/o)

** charts before earnings **



 




** charts after earnings **







Dollar General misses by $0.01, reports revs in-line; lowers FY19 outlook
  • Reports Q3 (Oct) earnings of $1.26 per share, including an estimated $0.05 net-negative impact from hurricane-related expenses and greater-than-anticipated other disaster-related expenses, $0.01 worse than the S&P Capital IQ Consensus of $1.27; revenues rose 8.7% year/year to $6.42 bln vs the $6.38 bln S&P Capital IQ Consensus. Same-store sales increased 2.8% from the third quarter of 2017, driven by an increase in average transaction amount and positive results in the consumables, seasonal and home categories, partially offset by sales declines in the apparel category. Customer traffic was essentially flat.
  • Co issues guidance for FY19, lowers EPS to $5.85-6.05 from $5.95-6.15 vs. $6.11 S&P Capital IQ Consensus; sees FY19 revs +9% to ~$25.58 bln vs. $25.57 bln S&P Capital IQ Consensus, compared to the previous range of 9% to 9.3%, and expects same-store sales growth to be in the middle of the previous range of mid-to-high two percent.
    The Company expects its fiscal year 2018 operating margin rate to be modestly below the fiscal year 2017 operating margin rate. This compares to the previous guidance of a relatively unchanged operating margin rate in fiscal year 2018 compared with fiscal year 2017. 
  • For the 52-week fiscal year ending January 31, 2020, the Company plans to execute ~2,075 real estate projects, including 975 new store openings, 1,000 mature store remodels, and 100 store relocations

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