Dollar General Posts Fiscal Q1 Beat

Dollar General shares were up almost 5% pre-market Thursday after the company reported fiscal Q1 results which narrowly beat expectations compiled by Capital IQ and raised its full-year revenue guidance. For Q1 ended May 5, EPS was $1.02 per share, down from $1.03 per share a year earlier but two cents above the consensus. Revenues rose 6.5% year-over-year to $5.61 billion and were slightly above the $5.59 billion mean estimate. Same-store sales increased 0.7% mostly due to an increase in the average transaction amount, which was partially offset by lower traffic.

For FY17, the discount retailer continues to expect EPS of $4.25 to $4.50 per share, straddling the $4.46 per share average estimate. Revenues are expected to increase 5% to 7%, up from a prior view for growth of 4% to 6%. FY17 capital expenditures are forecast at $715 million to $765 million, up from a prior view of $650 million to $700 million.

By Stephen Holmes