The 10-second takeaway
For the quarter ended Feb. 1 (Q4), Dollar General met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. GAAP earnings per share increased.
Margins expanded across the board.
Dollar General recorded revenue of $4.21 billion. The 24 analysts polled by S&P Capital IQ wanted to see revenue of $4.26 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $0.97. The 27 earnings estimates compiled by S&P Capital IQ predicted $0.90 per share. GAAP EPS of $0.97 for Q4 were 14% higher than the prior-year quarter's $0.85 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 32.5%, 30 basis points better than the prior-year quarter. Operating margin was 12.5%, 30 basis points better than the prior-year quarter. Net margin was 7.5%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $4.25 billion. On the bottom line, the average EPS estimate is $0.71.
Next year's average estimate for revenue is $17.66 billion. The average EPS estimate is $3.28.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 207 members out of 234 rating the stock outperform, and 27 members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 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 $53.55.
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