Dollar General Corporation (NYSE:DG) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 4%.

Dollar General Corporation Earnings Cheat Sheet Results: Adjusted Earnings Per Share increased 9.2% to $0.95 in the quarter versus EPS of $0.87 in the year-earlier quarter. Revenue: Rose 0.55% to $4.21 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dollar General Corporation reported adjusted EPS income of $0.95 per share. By that measure, the company beat the mean analyst estimate of $0.90. It missed the average revenue estimate of $4.26 billion.

Quoting Management: “Dollar General had yet another outstanding year in 2012 including exceptionally strong fourth quarter results. We grew our market share and invested strategically to continue to win with our customers. These results demonstrate the strength of our business strategy, and we believe we are very well-positioned for future growth,” said Rick Dreiling, chairman and chief executive officer.

Key Stats.

Revenue increased 6.14% from $3.96 billion in the previous quarter. EPS increased 50.79% from $0.63 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.74 to a profit $0.73. For the current year, the average estimate is a profit of $2.85, which is the same with that ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason.


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