The 10-second takeaway
For the quarter ended Nov. 2 (Q3), Dollar General met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased significantly.
Gross margins shrank, operating margins increased, net margins expanded.
Dollar General logged revenue of $3.96 billion. The 24 analysts polled by S&P Capital IQ foresaw a top line of $3.96 billion on the same basis. GAAP reported sales were 10% higher than the prior-year quarter's $3.60 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.63. The 27 earnings estimates compiled by S&P Capital IQ averaged $0.60 per share. GAAP EPS of $0.62 for Q3 were 24% higher than the prior-year quarter's $0.50 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 30.9%, 10 basis points worse than the prior-year quarter. Operating margin was 9.1%, 50 basis points better than the prior-year quarter. Net margin was 5.2%, 40 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.27 billion. On the bottom line, the average EPS estimate is $0.93.
Next year's average estimate for revenue is $16.08 billion. The average EPS estimate is $2.87.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 210 members out of 235 rating the stock outperform, and 25 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Dollar General a green thumbs-up, and 10 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Dollar General is outperform, with an average price target of $61.20.
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