Raised Outlook, Share Buybacks Accompany Dollar General's Strong Q2 Results
Sep 5th 2012 7:48AM
Dollar General (NYSE: DG) this morning reported fiscal second-quarter earnings of $0.64 per share on $3.95 billion in revenue. The results compare to $0.42 per share and $3.58 billion in the same period a year ago and to the Thomson Reuters consensus estimates of $0.64 per share on $3.95 billion. Same-store sales increased 5.1% year-over-year, driven by increases in customer traffic and average transaction amount.
The Tennessee-based discount retailer also lifted its full-year EPS guidance to $2.77 to $2.85 from the previous $2.68 to $2.78 per share. The Thomson Reuters consensus estimate is for $2.81 per share.
Furthermore, the board of directors authorized the purchase up to an additional $500 million of its common stock. This is over and above the $15 million remaining under the previous $500 million authorization.
"Dollar General had another strong quarter," said chairman and CEO Rick Dreiling. "We are pleased with the start of our third quarter and have refined our expectation for full year same-store sales growth to 4 to 5 percent, an increase from our previous expectation of 3 to 5 percent."
Shares are up by more than 4.5% in premarket trading at $53.02. The 52-week trading range is $34.22 to $56.04. Thomson Reuters had a consensus analyst price target of $58.97 before this news.
Filed under: 24/7 Wall St. Wire, Earnings, Retail Tagged: DG