Discount retailer, Dollar General Corporation (DG) came out with fourth-quarter fiscal 2014 results, wherein earnings of $1.17 a share that came in line with the Zacks Consensus Estimate and increased 16% year over year.
For fiscal 2015, Dollar General expects earnings to be in the range of $3.85 to $3.95 as against adjusted earnings of $3.50 reported in fiscal 2014.
Earnings Estimate Revision: The Zacks Consensus Estimate for fiscal 2014 remains unchanged but that for fiscal 2015 has been portraying a downtrend in the last 30 days. Further, if we look at Dollar General’s performance in fiscal 2014, it gives a dismal picture.
In the trailing four quarters, the company underperformed the Zacks Consensus Estimate by an average of 0.7%.
Revenues: Dollar General generated net sales of $4,939.1 million that increased 9.9% year over year but fell short of the Zacks Consensus Estimate of $4,957. Same store sales increased 4.9% for the quarter.
For fiscal 2015, the company expects sales to grow 8-9% over fiscal 2014 sales of $18,909.6 million. Same store sales are expected to grow 3-3.5% for fiscal 2015 as against 2.8% registered in fiscal 2014.
Key Events: Dollar General initiated dividend payment and announced an additional $1 billion worth of share repurchases authorization. The company will pay its first ever quarterly dividend of 22 cents on Apr 22, 2015 to shareholders as of Apr 8. Also, the company plans to step up store opening by nearly 7% square footage growth in 2016.
Zacks Rank: Currently, Dollar General carries a Zacks Rank #3 (Hold) which is subject to change following the earnings announcement.
Stock Movement: Dollar General’s shares are up nearly 1.1% during pre-market trading hours following the earnings release.
See Update: Dollar General Q4 Earnings Meet, Revenues Miss Estimates
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