Dollar General Beats Estimates (DG)

Discount retailer Dollar General Corp. (NYSE: DG) reported fourth-quarter and full-year earnings this morning and beat consensus estimates on both EPS and revenues for the quarter and the 2011 fiscal year.

For the quarter, Dollar General reported adjusted EPS of $0.87 on revenue of $4.19 billion. The consensus estimate called for EPS of $0.84 on revenue of $4.11 billion. For the year, the company reported adjusted EPS of $2.37 on revenue of $14.81, compared with estimates of $2.34 for EPS and $14.73 billion in revenue.

For the quarter, same-store sales rose 6.5% and for the year, same-store sales rose 6%. Gross margins were down slightly year-over-year for the quarter, from 32.4% a year ago to 32.2% this year. For the year, gross margin fell from 32% to 31.7%.

The company’s outlook for the 2012 fiscal year has total sales up 8%-9% and same-store sales up 3%-5%. Adjusted EPS is expected to be $2.65-$2.75. The consensus analyst estimate called for EPS of $2.71. Dollar General also plans to open about 625 new stores this year and to repurchase about $315 million in outstanding shares.