Why I Was Wrong About Dollar General Stock ... Sort Of
A couple of weeks ago, I recommended buying Dollar General (NYSE: DG) prior to Thursday's release of its fourth-quarter results. Like Target (NYSE: TGT), Walmart (NYSE: WMT), and Family Dollar parent Dollar Tree (NASDAQ: DLTR) already had, I expected Dollar General to exceed analysts' Q4 earnings estimates, as well as show progress in paring back its bloated inventory levels.
I was wrong ... sort of. For the three-month stretch ending in early February, Dollar General turned $10.2 billion worth of sales into a per-share profit of $2.96. Both numbers topped some analysts' estimates while falling short of others. Although all of these numbers were in the ballpark, so to speak, it was anything but the clear earnings beat I was hoping for.
Nevertheless, I'm doubling down on my bullish stance. Last quarter showed me something else even more impressive about Dollar General than an earnings beat.
Source Fool.com
