Dollar General (DG) Misses Q4 EPS by 4c, FY EPS Guidance Misses

Dollar General (NYSE: DG) reported Q4 EPS of $1.84, $0.04 worse than the analyst estimate of $1.88. Revenue for the quarter came in at $6.6 billion versus the consensus estimate of $6.6 billion.

• Fourth Quarter Same-Store Sales Increased 4.0%

GUIDANCE:

Dollar General sees FY2019 EPS of $6.30-$6.50, versus the consensus of $6.65.

• Net sales growth of approximately 7%
• Same-store sales growth of approximately 2.5%
• Operating profit growth of approximately 4% to 6%
• Diluted EPS in the range of $6.30 to $6.50; assumes an effective tax rate range of 22.0% to 22.5%
• Share repurchases of approximately $1.0 billion
• Capital expenditures in the range of $775 million to $825 million, including those related to investments in the Company’s strategic initiatives

During fiscal year 2019, the Company plans to execute approximately 2,075 real estate projects, including 975 new store openings, 1,000 mature store remodels, and 100 store relocations.

“Our operating and financial plan for fiscal year 2019 is balanced between investing in the long-term health of the business and delivering returns to our shareholders,” said John Garratt, Dollar General’s chief financial officer. “We are excited about our strategic initiatives, and we are devoting resources to support them as we believe they will create sustainable benefits for the company. In 2019, we expect to invest approximately $50 million in SG&A to advance these projects. We remain confident in the business and over the long term, our goal generally remains double-digit adjusted diluted EPS growth.”

For earnings history and earnings-related data on Dollar General (DG) click here.

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