Dollar General or Dollar Tree: Who Had the Better Q1 Report?

By Chris Lange Updated Jan 30, 8:13PM EST · Published May 30, 9:50AM EDT

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Dollar General or Dollar Tree: Who Had the Better Q1 Report? — © blackred / Getty Images

Both Dollar General Corp. (NYSE: DG | DG Price Prediction) and Dollar Tree Inc. (NASDAQ: DLTR) announced their most recent quarterly reports on Thursday morning. The question is which discount retailer had the better report?

Dollar General said that it had $1.48 in earnings per share (EPS) and $6.62 billion in revenue in the fiscal first quarter. That compared with consensus estimates of $1.39 in EPS and $6.56 billion in revenue, as well as the $1.36 per share and $6.11 billion posted the same period of last year.

During the latest quarter, Dollar General net sales increased 8.3% year over year. This net sales increase included positive sales contributions from new stores and growth in same-store sales, modestly offset by the impact of store closures.

At the same time, same-store sales increased 3.8%, due to increases in both average transaction amount and customer traffic.

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Looking ahead to the 2019 fiscal full year, the company expects to see EPS in the range of $6.30 to $6.50 with net sales growing roughly 7%. Consensus estimates call for $6.42 in EPS and $27.47 billion in revenue.

Shares of Dollar General traded up more than 6% early Thursday at $126.05, in a 52-week range of $86.87 to $126.84. The stock had a consensus price target of just $125.54.

Dollar Tree reported its fiscal first-quarter results as $1.14 in EPS and $5.81 billion in revenue. Consensus estimates had called for $1.14 in EPS and revenue of $5.79 billion. The same period of last year reportedly had EPS of $1.19 on $5.55 billion in revenue.

Overall enterprise same-store sales increased 2.2% year over year. This consisted of same-store sales growth in the Dollar Tree segment of 2.5% and 1.9% in the Family Dollar segment.

For the fiscal full year, the company expects to see EPS in the range of $4.77 to $5.07 and revenue between $23.51 billion and $23.83 billion. Consensus estimates are calling for $5.32 in EPS and $23.64 billion in revenue.

Dollar Tree traded at $98.87 per share early Thursday, or up more than 3%. The 52-week range is $78.78 to $111.61, and the consensus price target is $111.40.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.