The 10-second takeaway
For the quarter ended Feb. 3 (Q4), Dollar General beat slightly on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.
Gross margin shrank, operating margin improved, and net margin grew.
Dollar General logged revenue of $4.19 billion. The 22 analysts polled by S&P Capital IQ expected a top line of $4.11 billion on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $3.49 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.87. The 25 earnings estimates compiled by S&P Capital IQ anticipated $0.82 per share on the same basis. GAAP EPS of $0.85 for Q4 were 33% higher than the prior-year quarter's $0.64 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 32.2%, 20 basis points worse than the prior-year quarter. Operating margin was 12.1%, 30 basis points better than the prior-year quarter. Net margin was 7.0%, 60 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $3.79 billion. On the bottom line, the average EPS estimate is $0.61.
Next year's average estimate for revenue is $15.92 billion. The average EPS estimate is $2.70.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 161 members out of 182 rating the stock outperform, and 21 members rating it underperform. Among 34 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 26 give Dollar General a green thumbs-up, and eight 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 $45.33.
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