Will Dollar General or Dollar Tree Earnings Come Out on Top Thursday?

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Both Dollar General Corp. (NYSE: DG) and Dollar Tree Inc. (NASDAQ: DLTR) are scheduled to announce their most recent quarterly reports on Thursday morning. The question is, which discount retailer will have a better report?

In the fiscal first quarter, Dollar General seemingly got the win. But this is not to say that Dollar Tree is not due for a win with this report. Over the past quarter, Dollar General is up about 17% while Dollar Tree is up only 1.5%.

Consensus estimates are calling for Dollar General to have $1.57 in earnings per share (EPS) and $6.89 billion in revenue. The second quarter of last year reportedly had $1.52 in EPS and $6.44 billion in revenue.

In the fiscal first quarter, Dollar General said that it had $1.48 in earnings per share (EPS) and $6.62 billion in revenue. That compared with consensus estimates of $1.39 in EPS and $6.56 billion in revenue.

During the latest quarter, Dollar General net sales increased 8.3% year over year. This net sales increase included positive sales contributions from new stores and growth in same-store sales, modestly offset by the impact of store closures.

At the same time, same-store sales grew by 3.8%, due to increases in both average transaction amount and customer traffic.

Shares of Dollar General traded up about 1% on Wednesday, at $140.62 in a 52-week range of $98.08 to $145.06. The consensus price target is $142.23.

In addition, analysts are expecting Dollar Tree to post $0.81 in EPS and $5.71 billion in revenue. Dollar Tree said it had $1.15 in EPS and $5.53 billion in revenue in the same period of last year.

Dollar Tree reported its fiscal first-quarter results as $1.14 in EPS and $5.81 billion in revenue. Consensus estimates had called for EPS of $1.14 in EPS and revenue of $5.79 billion.

Overall, enterprise same-store sales increased 2.2% year over year. This consisted of same-store sales growth in the Dollar Tree segment of 2.5% and 1.9% in the Family Dollar segment.

Dollar Tree shares were trading up about 2% to $98.55, in a 52-week range of $78.78 to $113.38. The consensus analyst target is $111.81.


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