Dollar General Reports Decent 4Q, Morgan Stanley Remains Overweight

Morgan Stanley has published a research report on Dollar General Corporation DG after the company reported positive 4Q earnings. In the report, Morgan Stanley writes, "Dollar General reported a decent quarter, beating consensus estimates, though largely on lower SG&A expense (and tax rate). F2011 guidance of $2.20-$2.30 based on 3-5% comps was reassuring, however incorporates a 53rd week (adding $0.06) and lower interest expense (adding $0.03-$0.05). Without these differences, guidance still bracketed consensus of $2.15 and operating profit growth of 14-16%." Morgan Stanley maintains its Overweight rating on Dollar General, which closed yesterday at $30.38.