DG stock was down on Tuesday despite the company reporting an earnings beat for the third quarter of 2018.
Dollar General (NYSE:DG) starts off its earnings report for the third quarter of the year with earnings per share of $1.31. This is better than the company’s earnings per share of 93 cents from the same time last year. It also has the company beating out Wall Street’s earnings per share estimate of $1.26 for the quarter, but couldn’t keep DG stock from falling today.
Net income reported by Dollar General for the third quarter of 2018 came in at $334.14 million. This is an increase over the retail company’s net income of $252.53 million reported in the third quarter of the previous year.
Dollar General’s earnings report for the third quarter of the year also includes operating profit of $442.14 million. The company’s operating profit from the same period of the year prior was $417.43 million.
Dollar General also reported revenue of $6.42 billion for the third quarter of 2018. This is an increase over its revenue of $5.90 billion reported in the third quarter of 2017. It also comes in above analysts’ revenue estimate of $6.38 billion for the period, but was unable to stop DG stock from falling.
So what exactly is causing DG stock to fall today? The company’s outlook for the rest of the year isn’t looking good. It dropped its earnings per share guidance for the year to a range of $5.85 to $6.05 from between $5.95 and $6.15. This will have it missing Wall Street’s earnings per share estimate of $6.11 for the year.
DG stock was down 8% as of Tuesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
