Discount retailer Dollar General (NYSE:DG) will be reporting results this Thursday morning. Here’s what to look for.
Dollar General met analysts’ revenue expectations last quarter, reporting revenues of $10.79 billion, up 3.4% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates.
Is Dollar General a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Dollar General’s revenue to grow 4.2% year on year, in line with the 5.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Dollar General has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Dollar General’s peers in the non-discretionary retail segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Target delivered year-on-year revenue growth of 5.3%, beating analysts’ expectations by 1.5%, and BJ's reported revenues up 15.7%, topping estimates by 4.7%. Target traded up 3.8% following the results while BJ's was also up 7.9%.
Read our full analysis of Target’s results here and BJ’s results here.
Investors in the non-discretionary retail segment have had steady hands going into earnings, with share prices flat over the last month. Dollar General’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $132.31 (compared to the current share price of $122.72).
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