Dollar General (DG) 4Q15 Results: Solid Quarter, Good 2016 Earnings Guidance

Executive Summary

• Dollar General reported 4Q15 revenues of $5.3 billion, up 7.0% year over year and in line with the consensus estimate. EPS was $1.30, beating the consensus estimate by four cents. A tax benefit helped EPS by $0.06.
• Comps were up 2.2%, driven by increases in customer traffic and average transaction value in both consumables and nonconsumables.
• For 2016, the company expects an increase of 7%–10% in net sales, to $21.8–$22.4 billion, and an increase of 10%–15% in EPS, to $4.36–$4.55.