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Dollar General rallies on Q2 earnings and revenue beat, boost to full-year guidance

Dollar General rose 6% in early trading Thursday after the discount chain crushed Q2 earnings estimates and raised its full-year guidance.

Diluted earnings per share landed at $1.86, well ahead of the Street’s estimate of $1.58. Revenue reached $10.7 billion, marginally ahead of expectations. Same-store sales grew 2.8%, coming in above forecasts of 2.5%.

Looking ahead: Dollar General raised its full-year outlook, now guiding for EPS between $5.80 and $6.30, up big from prior expectations of $5.20 to $5.80 and much better than Wall Street’s forecast of $5.78. Net sales growth is expected to land between 4.3% and 4.8%, compared with its previous range of 3.7% to 4.7%.

Management said the boost to its outlook was “primarily to reflect its outperformance in the second quarter, as well as its improved outlook for the second half of the year.”

The retailer has been a winner among budget-conscious shoppers, who continue to spend more per trip as inflation squeezes household budgets.

Shares were up 46% year to date heading into the earnings release.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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