"While 3Q14 margin results continue to point to challenges faced by the company and industry at large, we believe that 5% forecasted 4Q14 comp-store sales coupled with the proposed acquisition of Family Dollar (and related synergies that are accretive to EPS) continue to overshadow 3Q14 results," analysts said about the Tennessee-based discount retailer.
"Management reaffirmed its FY14 guidance of $3.45 to $3.55 and indicated that it expected to land in the middle of the range; this compares with our estimate of $3.46 and consensus of $3.50," analysts added.
Shares of Dollar General are up 0.68% to $68.25.
Separately, 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."