Dollar General Corp. (NYSE: DG) is set to report earnings on Thursday before the market opens. These earnings loom as news for a potential merger between Dollar General and Family Dollar Stores Inc. (NYSE: FDO) has caused share prices to become more volatile. At the same time, Dollar Tree Inc. (NASDAQ: DLTR) is attempting to buy out Family Dollar as well.

Thomson Reuters has consensus earnings estimates of $0.83 per share and $4.77 billion in revenue. This would compare to the results for the same quarter a year ago of $0.77 earnings per share and $4.39 billion in revenue. Estimates for the coming quarter are for earnings of $0.81 per share and revenue of $4.77 billion.

Dollar General had shares spike to a 52-week high of $65.99 in June, after falling to a 52-week low of $53.00 in May, but the reality is that the most recent closing prices are among the highest ones of the past year, if you take out the gyrations. The volatility is keyed around the changing landscape of dollar stores via the merger of Family Dollar with Dollar General or with Dollar Tree, and the verdict is still out over who will win.

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As more the details for the potential merger come to light, the concerns of facing an antitrust suit for the dollar giant are beginning to subside. Dollar General originally offered Family Dollar $78.50 per share, but this was rejected, reportedly based on antitrust concerns. However, Family Dollar is still open to the idea of a merger, should there be government approval and possibly a higher offer.

With shares recently trading at $64.11, it has a consensus analyst price target of $69.12 and the 52-week range is $53.00 to $65.99. Dollar General trades at 15 times next year’s earnings.

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