logo-loader

Dollar General shares slip despite meeting Wall Street's fiscal 2Q estimates

Published: 07:52 30 Aug 2018 EDT

Dollar General store
Dollar General shares are trading slightly down in the pre-market session

Shares of the deep discount retailer Dollar General (NYSE:DG) slipped in the pre-market session despite reporting fiscal second-quarter results that fell into line with Wall Street estimates.

The company, which is based in Goodlettsville, Tennessee, posted a 38% jump in its net income to US$407mln or US$1.52 per share, in the quarter, up from US$295mln, or US$1.08 per share, in the year-ago quarter. Its sales, meanwhile, rose 10.6% to US$6.4bn, up from US$5.8bn while its same-store sales came in at 3.7% higher.

The results slightly exceeded the expectations of Wall Street analyst who had projected the retailer would earn US$1.49 on revenue of US$6.37bn.

Dollar General shares fell by 2.3% to US$104.50 in pre-market trade.

Read: Dollar General climbs on tax-aided jump in year-end earnings, dividend hike and favorable outlook

For fiscal 2018, Dollar General now expects its net sales growth to be in the range of 9% to 9.3%. The company is also raising its same-store sales growth outlook for the full year to the mid-to-high two percent range. 

Separately, the retailer is reiterating its diluted earnings-per-share guidance of $5.95 to $6.15 for the full fiscal year.

Shares in rival Dollar Tree (NASDAQ:DLTR),  meanwhile, plunged by 13% to US$82.14 after the retailer fell short of its earnings estimates for the second quarter and pared back its gidance.

Dollar Tree reported net income of US$273.9mln, or US$1.15 per share, in the quarter, up from US$233.8 mln, or US$0.98 per share, in the year-ago quarter. Its revenue, meanwhile, came in at US$5.525 bn. 

Its performance failed to beat the consensus estimate from analysts of per-share earnings of US$1.16 on sales of US$5.54bn.

Dollar Tree now projects it will see third-quarter earnings per share of US$1.11 to US$1.18 on revenue of US$5.53bn to US$5.64bn.

For the full year, the retailer has also narrowed its guidance and and predicts it will see sales of US$22.75bn to US$22.97bn, compared with its previous forecast of US$22.73bn to US$23.05bn. Its earnings per share over the same period is set to range from US$4.85 to US$5.05, compared to its prior forecast of US$4.80 to US$5.10.

 

 

BenevolentAI advances novel ulcerative colitis treatment through Phase 1a trial

BenevolentAI (OTC:BAIVF) chief scientific officer Dr Anne Phelan joins Proactive's Stephen Gunnion with positive safety data from the Phase 1a, first-in-human, clinical study of BEN-8744 in healthy volunteers. Phelan explained that BEN-8744 is a potent, selective PD10 inhibitor, uniquely...

2 hours, 23 minutes ago