NEW YORK (TheStreet) -- Dollar General (DG) shares are down 1.3% to $65.81 in pre-market trading on Thursday after the discount consumer goods retailer reported its third quarter financial results and reaffirmed its commitment to buying rival Family Dollar (FDO) .
The company reported third quarter revenue of $4.72 billion, a 7.8% increase over the previous year's period, which missed analysts' $4.8 billion expectations for the quarter. The company reported net earnings of 78 cents per diluted share which also fell short of Wall Street's expectations by 2 cents per share.
Dollar General, which had previously made a $1.9 billion bid for Family Dollar, said that it would provide investors with an updated bid for the company later this month. Family Dollar has previously said that it will reject Dollar General's bid and accept a lesser $8.5 billion bid from fellow retailer Dollar Tree (DLTR) .
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TheStreet Ratings team rates DOLLAR GENERAL CORP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate DOLLAR GENERAL CORP (DG) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, growth in earnings per share, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: DG Ratings Report