Dollar General shares jump after same-store sales beat, upbeat outlook

03/15/18 07:17 AM EDT

Dollar General Corp. (DG) shares jumped 7.5% in Thursday premarket trading after the discount retailer reported fourth-quarter same-store sales that beat expectations and gave an upbeat earnings outlook. Net income for the quarter totaled $712.2 million, or $2.63 per share, up from $414.2 million, or $1.49 per share, for the same period last year. Adjusted EPS was $1.48. Revenue for the quarter was $6.13 billion, up from $6.01 billion year-over-year. And same-store sales rose 3.3%. The FactSet consensus was for EPS of $1.48, sales of $6.21 billion, and same-store sales growth of 2.5%. Dollar General opened 1,315 stores in 2017, a record, according to Chief Executive Todd Vasos, and plans to open 900 in 2018, along with 1,000 store remodels and 100 store relocations. On Tuesday, the company announced a 12% dividend increase to 29 cents per share, payable on or before April 24, 2018 to shareholders of record on April 10, 2018. Dollar General expects 9% sales increase for fiscal 2018, same-store sales growth in the mid-2% range and EPS of $5.95 to $6.15. Same-store sales FactSet consensus is for 2.5% growth and EPS of $5.63. Dollar General is down nearly 2% for the past three months, but up 22.5% for the last year. The S&P 500 index is up 15.3% for the past 12 months.

-Tonya Garcia; 415-439-6400; AskNewswires@dowjones.com

 

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03-15-18 0717ET

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