Dollar General Beats on Revenues and Earnings in Fiscal 4Q16
Dollar General’s fiscal 4Q16 earnings overview
Dollar General (DG) released its fiscal 4Q16 and fiscal 2016 results on Thursday, March 16, 2017. The results relate to the three-month and 12-month periods ended February 3, 2017. The discount retailer reported impressive results, beating Wall Street’s estimates for its fiscal 4Q16 revenues and earnings.
Dollar General’s adjusted earnings per share (or EPS) rose 14.6% to $1.49, beating the consensus by $0.08. Its total revenues rose 13.7% YoY (year-over-year) to $6 billion, $20 million more than Wall Street estimates.
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About Dollar General
Headquartered in Tennessee, Dollar General (DG) is one of the largest discount retailers in the US. In August 2016, the company operated about 13,000 stores in 43 US states.
Investors looking for exposure to Dollar General through ETFs can consider the VanEck Vectors Retail ETF (RTH), which invests 2.5% of its holdings in the company.
Valuations and stock recommendation
Dollar General is currently trading at a one-year forward price-to-earnings ratio of 15.8x. The company is trading at a discount to other big variety store chains. Dollar Tree (DLTR), TJX Companies (TJX), and PriceSmart (PSMT) are trading at one-year forward earnings multiples of 16.7x, 20.3x, and 28.0x, respectively.
The average 12-month price target by 30 analysts covering Dollar General is $79.54, indicating an upside of ~9% over the next year. The company has a rating of 2.4 on a scale of 1 (strong buy) to 5 (strong sell).
This series presents an overview of Dollar General’s (DG) fiscal 4Q16 results. In this series, we’ll discuss the company’s performance during the quarter and look at its stock market performance and dividends.