What to Expect When Dollar General Reports Thursday

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Dollar General Corp. (NYSE: DG) is scheduled to release its fiscal fourth-quarter financial results before the markets open on Thursday. The consensus estimates call for $1.88 in earnings per share (EPS) and $6.61 billion in revenue. In the same period of last year, the retailer said it had $1.48 in EPS and $6.13 billion in revenue.

During the most recent quarter, net sales increased 8.7% year over year. Same-store sales increased 2.8% in the same time, driven by an increase in average transaction amount and positive results in the consumables, seasonal and home categories, partially offset by sales declines in the apparel category. Customer traffic was essentially flat.

At that point, Dollar General delivered questionable operating performance and financial results. This was in part due to two devastating hurricanes. Despite the challenges created by these weather events, the company achieved strong top-line growth, but this wasn’t enough for investors.

Also in the third quarter, both consumables and non-consumables categories drove financial performance, and Dollar General achieved its highest two-year same-store-sales stack in 11 quarters.

Excluding Wednesday’s move, Dollar General had slightly underperformed the broad markets, with its stock up about 11% year to date. In the past 52 weeks, the stock was actually up 38%.

A few analysts weighed in on Dollar General ahead of results:

  • Citigroup has a Buy rating with a $144 price target.
  • Oppenheimer has an Outperform rating and a $130 target.
  • Deutsche Bank has a Hold rating.
  • Raymond James has a Buy rating with a $127 price target.
  • Wells Fargo has an Outperform rating and a $129 price target.
  • BMO Capital Markets has an Outperform rating.
  • JPMorgan has an Overweight rating with a $123 price target.

Shares of Dollar General were last seen up about 1% at $120.61, in a 52-week range of $86.87 to $120.86. The consensus price target is $121.44.

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