Dollar General Q4 Profit Beats Estimates; Net Sales Up 7.0%; Increases Dividend

(RTTNews) - Dollar General Corp. (DG) reported fourth-quarter net income of $376 million, or $1.30 per share, compared to $355 million, or $1.17 per share, prior year. On average, 27 analysts polled by Thomson Reuters expected the company to report profit per share of $1.26 for the quarter. Analysts' estimates typically exclude special items.

Net sales increased 7.0 percent to $5.29 billion compared to $4.94 billion, prior year. Same-store sales increased 2.2 percent. Analysts expected revenue of $5.30 billion for the quarter.

For full year 2015, the company reported net income of $1.17 billion, or $3.95 per share, compared to $1.07 billion, or $3.49 per share, last year. Adjusted EPS increased 13 percent to $3.96 in fiscal 2015. Full year 2015 net sales increased 7.7 percent to $20.4 billion. Same-store sales increased 2.8 percent.

Looking forward, the company has established a financial growth model that is focused on long-term shareholder value creation. Key components of the model include: annual growth in net sales of 7-10%, same-store sales growth of 2-4%; and annual growth in earnings per share of 10-15%. Including the impact of the 53rd week, the company expects its fiscal 2016 net sales and EPS results to be at the high end of the ranges outlined in the growth model. Same-store sales growth for fiscal 2016 is forecasted to be near the middle of the range outlined in the growth model.

Dollar General plans to open approximately 900 new stores and relocate or remodel 875 stores in fiscal 2016. Capital expenditures are expected to be in the range of $550 million to $600 million.

For 2016, Dollar General plans to return approximately $1.3 billion to shareholders through anticipated quarterly cash dividends and consistent share repurchases. The company plans share repurchases of approximately $1.0 billion in fiscal 2016.

On March 8, 2016, the Board of Dollar General approved an increase of 14 percent in its regular quarterly cash dividend to shareholders. The first quarter dividend of $0.25 per share will be payable on April 12, 2016 to shareholders of record of the company's common stock on March 29, 2016.