Investors went shopping at the dollar store early Monday...but the buying spree didn't last too long.
Shares of Dollar General (DG) spiked nearly 6% after the retailer reported earnings that topped forecasts, despite missing revenue estimates.
Investors were heartened by Dollar General's top line earnings numbers and its plan to buy back stock.
But shares pulled back as concern about the company's guidance gave investors pause.
"The volatility of the macroeconomic environment continues to pressure the consumer and impact the company's cost of purchasing and delivering merchandise to its stores," Dollar General said in a statement.
StockTwits traders took a cautious view.
Not sure I completely concur. Sure, the initial pop in Dollar General's stock was pretty substantial. But it's pulled back so quickly that I think it will take more than one good report to really get things going.
Exactly my point (see above). The guidance was roughly in line with forecasts. So, while it's all fine and good to say they see sales picking up during the second half of 2013, a lot can happen between now and then.
That may be another reason to see pressure on the stock. I'm not sure strong sales of tobacco are the optimum selling point.
They are probably feeling more frugal than we think. Dollar General's stock has retreated from its early rally and rival Family Dollar (FDO) is down more than 2%.
Retailers have had a rough time lately, what with Superstorm Sandy, a sluggish economy and overall weak holiday sales.
You'd think dollar stores would be the exception. Not today.
Family Dollar missed earnings-per-share estimates by 6 cents a share and said profits the current quarter and full year would come in below forecasts. The company, which sells everything from baby care to home goods, blamed a worsening macro environment for ratcheting MORECatherine Tymkiw - Jan 3, 2013 2:01 PM ET
Anyone spare a dollar?
Dollar General (DG) is having a rough day after reporting decent earnings but less-than-stellar guidance. Shares slumped nearly 5% Tuesday.
The discount retailer beat earnings-per-share estimates by 3 cents but that's where the good news ends. Revenue was just in line with forecasts, and Dollar General's outlook left investors with little to cheer about.
"Although our performance over the Thanksgiving weekend and start of the holiday season has MORECatherine Tymkiw - Dec 11, 2012 11:55 AM ET
Not a member yet?Sign up now for a free account
|America's economic mobility myth|
|Where should you put your money now?|
|The economy: The 2014 outlook|
|Snowden docs had NYTimes exec fearing for his life|
|Treasury closes the book on GM bailout with final stock sale|