2023-12-07 09:33:37 ET
Dollar General Corp (NYSE: DG) opened in the green this morning after reporting market-beating results for its fiscal third quarter.
Dollar General stock up on reiterated guidance
Shares of the discount retailer are being rewarded also because it reiterated its guidance for the full year.
Dollar General expects up to a 2.5% annualised growth in sales in its fiscal 2023 on $7.10 to $7.60 of per-share earnings. According to Lee Munson of Portfolio Wealth Advisors said recently:
They’ll get the inventories down. I love the pop shelf stores. This company is in a tough business; however, the PE is so cheap compared to its competitors. I think [it’s a chance to pick up shares].
The New York listed firm ended the quarter with $7.4 billion worth of total merchandise inventories – up about $300 million versus the same quarter last year. Dollar General stock is currently down 45% year-to-date.
Watch here: https://www.youtube.com/embed/tCrnma50V1s?feature=oembedDollar General recently brought back Vasos as CEO
The earnings report arrives more than a month after Dollar General reinstated Todd Vasos as its Chief Executive.
Vasos was not content with the performance his company reported for Q3 on Thursday. Still, Munson said on CNBC’s “ The Exchange ”:
I loved this thing at $100 right before Vasos came back. It’s run up a little bit. I kind of regret I didn’t just jump in a little bit earlier, few months ago.
Note that the Goodlettsville-headquartered firm plans on opening 800 new stores in its fiscal 2024 and remodel about 1,500 of the existing ones as well, as per the press release . Wall Street currently has a consensus “hold” rating on Dollar General stock.
Notable figures in Dollar General Q3 earnings
- Earned $276.2 million versus the year-ago $526.2 million
- Per-share earnings also tanked from $2.33 to $1.26
- Sales climbed 2.4% year-over-year to $9.694 billion
- Consensus was $1.20 a share on $9.644 billion in sales
Dollar General reported gross profit as a percentage of its net quarterly sales at 29% today – down about 150 basis points versus the same quarter last year due to increased shrink and higher markdowns. Munson added:
The new CEO back is making people comfortable. A lot of people don’t have gas money to drive 25 miles to a Walmart. They got $3.0 and they need some things like toothpaste, necessities. DG provides that.
The post Munson says Dollar General stock is ‘so cheap’ after Q3 earnings appeared first on Invezz