- Dollar General‘s fourth-quarter earnings per share (EPS) were significantly lower than expected at 87 cents, compared to $1.83 the previous year, and below the estimated $1.50.
- Net sales for the company reached $10.30 billion, an increase of 4.5% from the previous year, and slightly above the estimate of $10.25 billion.
- The company’s gross margin was 29.4%, a slight decrease from 29.5% the previous year, though slightly higher than the estimated 29.2%.
- Selling, General, and Administrative (SG&A) expenses represented 26.6% of revenue, up from 23.6% the previous year, and exceeded the estimate of 24.3%.
- Operating profit saw a significant decline, totaling $294.2 million, a drop of 49% year-over-year, and fell short of the expected $497.4 million.
- Analyst recommendations include 10 buy ratings, 20 hold ratings, and 1 sell rating for Dollar General.
Dollar General on Smartkarma
Analysts on Smartkarma, including Baptista Research, are closely monitoring Dollar General Corporation’s performance following the release of their third-quarter results for fiscal 2024. The recent report outlines the company’s ability to maintain operational resilience amidst challenging external factors and internal strategic initiatives. Despite being impacted by hurricanes in the Southeast, Dollar General managed to mitigate sales disruptions. Baptista Research, in their analysis, delves into various drivers that could impact the company’s stock price in the coming months. Using a Discounted Cash Flow (DCF) methodology, they aim to provide an independent valuation of Dollar General to offer insights for investors.
A look at Dollar General Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Dollar General Corporation, known for its discount retail stores across the United States, has received above-average Smart Scores in several key areas. With a strong focus on dividends and momentum, the company’s outlook appears promising for the long term. While values and growth scores are moderate, robust momentum and solid dividend performance indicate stability and potential growth for investors.
Despite facing some challenges in resilience, Dollar General‘s overall Smart Scores paint a positive picture for its future prospects. Investors may find the company an attractive option for consistent dividends and growth potential, leveraging its strong momentum in the market. With a diverse range of merchandise offerings, including consumable and non-consumable products, Dollar General seems well-positioned to capitalize on its strengths in dividend and momentum going forward.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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