1Q25 Revenue: $10.44B, +5.3% YoY, beat estimates by $150M
1Q25 GAAP EPS: $1.78, beat estimates by $0.29
1Q25 Dividend: Dollar General declares $0.59/share quarterly dividend, in line with previous; Forward yield 2.43%; Payable July 22; for shareholders of record July 8; ex-div July 8.
FY25 Guidance: Raised FY25 guidance. Expect net sales growth between 3.7% to 4.7%, midpoint of 4.2% above consensus of 3.92%, and compared to 3.4% to 4.4% previously; Expect same store sales growth between 1.5% to 2.5%, midpoint of 2.0% above consensus of 1.78%, and compared to 1.2% to 2.2% previously; Expect GAAP EPS between $5.20 to $5.80, midpoint of $5.50 below consensus of $5.61, and vs $5.10 to $5.80 previously; Expect effective tax rate to be 23.5%; Expect capital expenditures to be between $1.30 to $1.40.
Comment: Dollar General delivered strong results in 1Q25, driven by solid sales growth as cost-conscious consumers increasingly sought value alternatives. Same-store sales rose 2.4% year-over-year, supported by higher average transaction values that offset a slight dip in store traffic. Notably, the company also reported increased visits from middle- and higher-income shoppers, who are spending more on discretionary items. Following its better-than-expected quarter, management raised full-year guidance for both net sales and same-store sales growth. The company gained market share in essential categories like food and cleaning supplies, as well as in discretionary segments such as home décor, tableware, and apparel. Management noted that only a relatively small portion of goods—mid- to high-single digits as a percentage of total products sold—were directly imported, with less than 70% of those coming from China. Indirect imports were approximately double that amount, with under 40% sourced from China. This limited exposure to Chinese imports offers some insulation from U.S. tariffs. Looking ahead, potential tariff-driven price increases and broader economic uncertainty could drive even more consumers toward value-oriented retailers like Dollar General. 2Q25recommended trading range: $105 to $130. Positive Outlook.
1Q25 Revenue: $1.66B, +21.5% YoY, miss estimates by $70M
1Q25 Non-GAAP EPS: -$0.41, miss estimates by $0.04
2Q25 Guidance: Expect total revenue to be between $2.689bn to $2.765bn; midpoint of $2.727bn below consensus of $2.78bn; Expect deliveries of vehicles to be between 72,000 to 75,000 units.
Comment: NIO reported a weak set of results, reflecting a challenging quarter marked by recovery efforts and new product launches. Although the company posted some growth, intensifying competition in the EV sector continued to weigh on profitability. Adding to the pressure, leading automaker BYD recently introduced discounts across more than a dozen models—an industry move seen as a potential tipping point, where weaker players may struggle to absorb mounting losses amid aggressive price cuts. At the same time, auto dealers are grappling with overcapacity caused by overproduction, further driving prices downward. Looking ahead, the ongoing EV price war in China remains a significant headwind for NIO’s margins and market positioning. 2Q25recommended trading range: $2.8 to $4.2. Neutral Outlook.
1Q26 Revenue: $1.1B, +19.4% YoY, miss estimates by $10M
1Q26 Non-GAAP EPS: $0.73, beat estimates by $0.07
2Q26 Guidance: Expect adjusted earnings per share of $0.82 to $0.84 on revenue of $1.14B and $1.15B, compared with estimates of $0.81 and $1.16B respectively. It expects free cash flow to be impacted by about $29M due to outage and related expenses.
FY26 Guidance: Raised its guidance for full-year earnings but maintained its expectation for revenue. It expects $3.44 to $3.56 in adjusted earnings per share, with $4.74B to $4.81B in revenue. The LSEG consensus was $3.43 per share and $4.77B in revenue. It previously expected $3.33 to $3.45 in adjusted earnings per share
Share buyback: Board approved $1B share buyback.
Comment: CrowdStrike posted fiscal Q1 revenue of US$1.10bn, slightly missing analyst expectations and delivered adjusted earnings of US$0.73 per share, beating estimates by US$0.07. However, the company’s Q2 revenue forecast of US$1.14bn-US$1.15bn fell slightly short of Wall Street’s estimate of US$1.16bn. The company also expects free cash flow in Q2 to be negatively impacted by US$29mn due to a service outage and related expenses. The softer outlook reflects weaker government and enterprise cybersecurity spending, pressured by high interest rates, persistent inflation, and macro uncertainty. Budget constraints across U.S. federal, state, and local governments are creating a more difficult contracting environment. CrowdStrike also faces increasing competitive pressure from peers like Palo Alto Networks and Fortinet. For the full year, it expects US$3.44 to US$3.56 in adjusted earnings per share on US$4.74bn to US$4.81bn in revenue. Despite near-term headwinds, the board approved a US$1bn share buyback, signalling long-term confidence in the company’s fundamentals. Looking ahead, CrowdStrike will need to navigate a tougher spending climate and intensifying competition. While near-term revenue may remain pressured by macroeconomic factors and budget tightening in the public sector, rising cybersecurity threats and ransomware risks continue to support long-term demand. 2Q26recommended trading range: $440 to $480. Neutral Outlook.
2Q25 Revenue: $7.63B, +6.0% YoY, beat estimates by $130M
2Q25 Non-GAAP EPS: $0.38, beat estimates by $0.05
FY25 Guidance: Expect full-year profit of US$1.78 to US$1.90 a share, raising the lower end of the range US$0.08, compared to the average estimate of US$1.80 a share. It also expects tariffs to have a milder effect on profits with import taxes expected to negatively affect adjusted profit by US$0.04 per share, down from the previous expectation of US$0.07 a share. Revenue is expected to increase 7% to 9% after adjusting for currency fluctuations, a reduction from a previous range of 7% to 11%.
Comment: Hewlett Packard Enterprise reported better-than-expected fiscal Q2 results, with revenue rising 6% YoY to US$7.63bn, beating analyst estimates of US$7.46bn. Adjusted earnings per share was US$0.38, above expectations of US$0.33. During the quarter, its AI systems revenue reached US$1.0bn, surpassing the projected US$798mn, driven by strong demand for AI infrastructure, though this business carries lower margins due to the cost of AI chips. HPE revised its full-year adjusted EPS guidance to US$1.78-US$1.90, raising the lower bound by US$0.08, while tariff-related impacts were revised down from US$0.07 to US$0.04 per share. However, the company trimmed its revenue growth forecast to 7%-9%, from 7%-11%, due to macro pressures. Despite outperforming in AI, HPE continues to trail peers and faces challenges including a US$350mn workforce reduction and regulatory scrutiny over its US$14bn Juniper acquisition. Looking ahead, HPE is poised to capitalize on strong AI infrastructure demand, but must balance growth with margin pressure. With AI momentum building and tariff risks easing, HPE has room for gradual recovery, but execution and strategic clarity will be critical amid heightened competition. 3Q25recommended trading range: $17 to $20. Neutral Outlook.
