Dollar General posts 3Q profit, results miss estimates; remains committed to Family Dollar bid

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GOODLETTSVILLE, Tennessee — Dollar General Corp. reported third-quarter results Thursday that missed Wall Street expectations, and said it is still committed to buying rival discount retailer Family Dollar, which has already agreed to be bought by Dollar Tree. Dollar General said it plans to give an update on its Family Dollar bid this month.

The Goodlettsville, Tennessee-based company posted net income of $236.3 million, or 78 cents, per share. Earnings, adjusted for one-time gains and costs, came to 79 cents per share. The average estimate of analysts surveyed by Zacks Investment Research was for earnings of 80 cents per share.

It reported revenue of $4.72 billion, up from $4.38 billion a year ago but short of Street forecasts. Analysts expected $4.76 billion, according to Zacks.

For the full year, the company expects earnings between $3.45 per share and $3.55 per share. Analysts surveyed by FactSet expect earnings of $3.50 per share.

Dollar General made a $9.1 billion takeover bid for Matthews, North Carolina-based Family Dollar Stores Inc. in September, after Family Dollar rejected its other offers. In July, Family Dollar accepted an $8.5 billion buyout offer from Chesapeake, Virginia-based Dollar Tree Inc. Dollar General said it will announce an update to its offer to buy Family Dollar before its shareholder's meeting scheduled for Dec. 23.

Its shares slipped 30 cents to $66.39 in premarket trading about 30 minutes before the market open.

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Elements of this story were generated by Automated Insights using data from Zacks Investment Research. DG stock research report from Zacks.

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Keywords:Dollar General,Earnings Report

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