Dollar General beats 4Q profit forecasts
NEW YORK (AP) — Dollar General Corp. reported that its fourth quarter profit rose almost 6 percent, topping Wall Street expectations on a boost in customer traffic and transaction amounts Thursday.
Its shares rose more than 4 percent in premarket trading.
Net income rose 5.8 percent to $376.2 million, or $1.30 per share. The results exceeded Wall Street expectations. The average estimate of 14 analysts surveyed by Zacks Investment Research was for earnings of $1.27 per share.
The discount retailer’s revenue rose 7 percent to $5.29 billion in the period, which matched Street forecasts.
Sales at stores open at least a year rose 2.2 percent during the quarter. The company said it saw significant sales boosts in candy, snacks and food.
For the year, the Goodlettsville, Tennessee-based company reported profit of $1.17 billion, or $3.95 per share. Revenue was reported as $20.37 billion.
Looking ahead, the company expects sales growth between 7 percent and 10 percent in 2016 and earnings per share growth between 10 percent and 15 percent.
Dollar General shares rose 4.4 percent, or $3.29, to $78.50 in premarket trading about 90 minutes ahead of the market opening.
Dollar General shares have climbed nearly 5 percent since the beginning of the year, while the Standard & Poor’s 500 index has declined roughly 3 percent. The stock has risen almost 5 percent in the last 12 months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on DG at http://www.zacks.com/ap/DG
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