Dollar General (DG) 3Q16: Misses Estimates, 2016 EPS Growth Now Expected at Low End of Range

Executive Summary

• Dollar General reported 3Q16 EPS of $0.84, including $0.05 of expenses and charges, and missing the $0.93 consensus estimate. Revenues were $5.32 billion, up 5.0% year over year, and slightly below the $5.36 billion consensus estimate.
• Comps declined by 0.1%, due to a decline in traffic, partially offset by higher transaction values.
• Dollar General now expects 2016 EPS growth at the low end of the 10%–15% range, with the 53rd week contributing 200 basis points to sales and $0.09 to EPS.