Dollar General (DG) Stock Gains on Mixed Earnings Results

NEW YORK (TheStreet) -- Dollar General (DG) shares are up 3.3% to $75.21 in early market trading on Tuesday after the discount retailer reported its first quarter earnings results before the opening bell today.

The company reported first quarter earnings of $253.2 million, or 84 cents per share on an adjusted basis, topping its year ago EPS of 72 cents by 12 cents and coming out ahead of analysts' 82 cents per share expectations for this quarter.

Revenue for the period rose 8.8% to $4.92 billion, just missing analysts' $4.94 billion guidance.

Same store sales for the period rose 3.7%, falling short of analysts' 4.2% expectations.

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, solid stock price performance, growth in earnings per share, increase in net income and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

DG Chart DG data by YCharts

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