How Did Q3 Look For These Discount Retailers?

Retail earnings continue to flow in, offering a mixed picture concerning the prospects of these companies amid the holiday season. Here is a compilation of earnings of some discount retailers, which released their quarterly financial scorecards over Thursday and Friday.

Dollar General Hit By Triple Whammy

Dollar General Corp. DG, which released its third-quarter results ahead of the open on Thursday, reported earnings of $0.84 per share, below the $0.93 per share consensus estimate. Revenues came in at $5.32 billion, trailing the $5.37 billion consensus estimate. This marks the second consecutive quarter that the company missed bottom-line projections.

The company said in its earnings calls that average unit retail price deflation and reduction in SNAP benefits impacted same-store sales results by about 150 to 175 basis points.

Wal-Mart Stores, Inc. WMT investments also put pressure on the company, as opposed to views by analysts that the company is likely to remain relatively immune.

The stock dropped about 5 percent on Thursday.

Five Below Stands Above

Five Below Inc FIVE reported Thursday after the close earnings per share of $0.10, ahead of the $0.08 reported for the year-ago period and the $0.09 consensus estimate. Revenues climbed 17.5 percent to $199.5 million, below the consensus estimate of $201 million. However, comps were down 0.2 percent, suggesting that expansion has driven the growth.

The company guide for the fourth quarter was in line with the consensus estimate. Five Below also raised the low end of its full-year guidance.

Five Below shares are rallying over 11 percent in pre-market trading after ending Thursday's session up 1.32 percent.

Big Lots Beats And Raises

Big Lots, Inc. BIG reversed to a third-quarter profit, and it posted adjusted earnings per share from continuing operations of $0.04, belying expectations for a small loss. Revenues were about in line. Comps were flattish, compared to expectations for 0–2 percent growth.

The company released its earnings ahead of the market open on Friday.

Big Lots affirmed its fourth-quarter guidance and lifted its bottom-line guidance for the full year.

Big Lots is making a big jump in pre-market, with over a 4 percent move to the upside after seeing modest gains on Thursday.

In Pre-Market Trading

  • Big Lots was advancing 1.44 percent to $51.50.
  • Dollar General was losing 0.24 percent to $73.30.
  • Five Below was rallying 11.01 percent to $44.27.
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Posted In: EarningsNewsGuidanceMoversTrading Ideasholiday shopping seasonretailretailers
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