NEW YORK (
Tuesday handily beat Wall Street's profit expectations for its fiscal second-quarter results and lifted its same-stores outlook for the full year to growth of 4%-6%.
The Goodlettsville, Tenn.-based off-price retailer reported an adjusted profit of $181 million, or 52 cents a share, for the 13 weeks ended July 29 with sales rising 11.2% year-over-year to $3.58 billion. Same-store sales increased 5.9% in the period.
The average estimate of analysts polled by
was for earnings of 48 cents a share in the July-ended period on sales of $3.56 billion.
"Dollar General delivered strong results for the second quarter," said Rick Dreiling, the company's chairman and CEO, in a statement. "Our same-store sales increase of 5.9 percent in the quarter represents an acceleration from the first quarter and demonstrates our ability to balance the challenges of pricing and rising input costs."
The company's revised same-store sales outlook lifted the low end of its forecast, and Dollar General said it now expects adjusted earnings of $2.22 to $2.30 a share for the full year with total sales growth ranging from 12%-14%.
The current consensus view is for earnings of $2.24 a share for its fiscal year ended in January 2012.
Dollar General shares closed Monday at $33.79, up 3.8%. Year-to-date, the stock has gained more than 10%. Wall Street was bullish ahead of the report with 12 of the 18 analysts covering the stock at either strong buy (8) and buy (4).
Written by Michael Baron in New York.
>To contact the writer of this article, click here:
>To submit a news tip, send an email to:
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.