What to Expect When Dollar General Reports Thursday

Dollar General Corp. (NYSE: DG) is scheduled to release its fiscal third-quarter financial results before the markets open on Thursday. The consensus estimates are calling for $1.38 in earnings per share (EPS) and $6.92 billion in revenue. The same period of last year reportedly had $1.26 in EPS and $6.42 billion in revenue.

In the most recent earnings report, Dollar General net sales increased 8.4% 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 increased 4.0%, due to increases in both average transaction amount and customer traffic.

The results from the fiscal second quarter were fueled by solid execution across many fronts, including category management, merchandise innovation, store operations and continued progress with strategic initiatives.

Management was also very optimistic following the second quarter. As a result of Dollar General’s first-half performance and expectations for the remainder of the year, the firm raised its full-year financial guidance.

Excluding Wednesday’s move, Dollar General had outperformed the broad markets, with the stock up about 41% year to date. In the past 52 weeks, the stock was up about 38%.

A few analysts weighed in on Dollar General ahead of the report:

  • Guggenheim has a Buy rating with a $165 price target.
  • Morgan Stanley has an Overweight rating and a $170 price target.
  • Citigroup’s Buy rating comes with a $184 price target.
  • JPMorgan has an Overweight rating with a $184 price target.
  • Sanford Bernstein rates it as Outperform with a $173 price target.
  • Oppenheimer has an Overweight rating and a $173 price target.

Shares of Dollar General were last seen up about 2% at $155.57, in a 52-week range of $98.08 to $166.98. The consensus price target is $169.68.