Who Had the Better Q2: Dollar General or Dollar Tree?

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Both Dollar General Corp. (NYSE: DG) and Dollar Tree Inc. (NASDAQ: DLTR) announced their most recent quarterly reports on Thursday morning. Which discount retailer had the better report?

Dollar General said that it had $1.74 in earnings per share (EPS) and $7.0 billion in revenue in the fiscal second quarter. That compares with consensus estimates of $1.57 in EPS and $6.89 billion in revenue, as well as the $1.52 per share and $6.44 billion posted in the same period of last year.

During the latest quarter, Dollar General net sales increased 8.4% year over year. This net sales increase included positive sales contributions from new stores and growth in same-store sales, modestly offset by the impact of store closures.

At the same time, same-store sales increased 4.0%, due to increases in both average transaction amount and customer traffic.

Looking ahead to the 2019 fiscal full year, the company expects to see EPS in the range of $6.36 to $6.51 with net sales growing roughly 8%. Consensus estimates call for $6.47 in EPS and $27.52 billion in revenue.

Dollar Tree reported its fiscal second-quarter results as $0.76 in EPS and $5.74 billion in revenue. Consensus estimates had called for $0.81 in EPS and revenue of $5.71 billion. The same period of last year reportedly had EPS of $1.15 on $5.53 billion in revenue.

Overall, enterprise same-store sales increased 2.4% year over year. This consisted of same-store sales growth in the Dollar Tree segment of 2.4% and 2.4% in the Family Dollar segment.

For the fiscal full year, the company expects to see EPS in the range of $4.90 to $5.11 and revenue between $23.57 billion and $23.79 billion. Consensus estimates are calling for $5.32 in EPS and $23.64 billion in revenue.

Dollar Tree traded up about 2% at $101.35 per share early Thursday. The 52-week range is $78.78 to $113.38, and the consensus price target is $111.81.

Shares of Dollar General traded up about 10% to $155.08, in a 52-week range of $98.08 to $155.39. The stock had a consensus price target of just $142.23.


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