We’ve finally finished out first-quarter earnings season for Blue Chip Growth stocks with our latest two reports. Let’s take a little closer look at our two stocks to see where they stand after earnings season.
Management at Dollar General (NYSE:DG) announced that the company posted record operating results for the first quarter. Compared with the same quarter last year, earnings jumped 36% to $213.4 million, or 63 cents per share. Analysts expected the company to earn 60 cents per share, so the company posted a 5% earnings surprise.
Over the same period, net sales climbed 13% to $3.9 billion; this also topped the $3.83 billion consensus estimate by 2%. The company reported particular success with sales of consumable goods, seasonal goods and home-products.
Dollar General’s top- and bottom-lines are still going strong, and this company is headed towards another quarter of industry-beating operating performance. The stock closed at $50.29 at the end of last week, and I consider this Conservative stock a buy.
Compared with the same quarter last year, net sales soared 53% to $285.7 million. Analysts forecast net sales of $270.9 million, so the company posted a 5% sales surprise.
Over the same period, net income advanced 31% to $43.64 million, or 32 cents per share. Earnings per share topped the 30 cents per share consensus estimate by 7%.
Lululemon posted stunning results for the first quarter. However, shares consolidated on news that the company has revised its 2012 sales and earnings view below the Street view.
Currently, the company expects earnings of $1.55 to $1.60 per share on net sales of $1.32 billion to $1.34 billion. Meanwhile analysts expect sales of $1.35 billion on earnings of $1.63 per share.
I don’t consider this cause for alarm, because I believe the company’s conservative guidance is simply a way to manufacture earnings surprises in the next quarter.
Nonetheless, I will continue to keep close watch on the situation and let you know immediately if I change my recommendation for LULU. In the meantime, add this Aggressive stock on buying opportunities.